Close Update: Dow's Winning Streak Ends as Tax Reform Developments Weigh

Close Update: Dow's Winning Streak Ends as Tax Reform Developments Weigh

The Dow Jones Industrial Average surrendered its early gains and closed with a loss for the first time in six days on concerns that the tax reform package may be losing critical Senate votes. After Senators Marco Rubio and Mike Lee expressed their disapproval with the current child care tax credit, investors rotated out of shares of companies with a high tax burden, driving the S&P 500 to its lowest level in four days.

Shares were kept afloat early on by bullish economic data and the outcome of Wednesday’s Federal Open Market Committee meeting. China’s central bank also raised interest rates, but the Bank of England, European Central Bank and Swiss National Bank all held rates steady. Coupled with better-than-expected gains in retail sales and a 44-year low in initial jobless claims, the Dow was on track to post another positive close.

The uptrade evaporated as the Dow struggled to breach 24,700 and, along with recent developments surrounding tax reform, Wall Street was also undermined by changes to net neutrality as well as “investor fatigue” after the Dow set its third straight record high. As a result, decliners led advancers by five to one among Dow components.

Disney ( DIS ) was the notable exception with the Dow component rallying to an eight-day high after agreeing to acquire the film and television assets of 21st Century Fox (FOX, FOXA) for $52.4 billion.

For Friday, quadruple witching will be joined with data on manufacturing activity in the NY Fed region and November industrial production and capacity utilization.

Here’s where the markets stood at the close:

US MARKETS

Dow Jones Industrial Index was down 76.77 points (-0.31%)

S&P 500 was down 10.84 points (-0.41%)

Nasdaq Composite Index was down 19.27 points (-0.28%)

GLOBAL SENTIMENT

FTSE 100 was down 0.65%

Nikkei 225 was down 0.28%

Hang Seng Index was down 0.19%

Shanghai China Composite Index was down 0.29%

UPSIDE MOVERS

(+) AMPE (+33.14%) Osteoarthritis study meets endpoints

(+) SMIT (+18.94%) Reported a profit for Q2 as sales increased 42%

(+) TEVA (+10.19%) Plans to cut workforce by 14,000, suspend dividend as part of restructuring

DOWNSIDE MOVERS

(-) PIR (-29.57%) Reported weaker-than-expected Q3 results, issued soft Q4 guidance

(-) CRTO (-22.75%) Cuts revenue forecast to reflect impact from Apple’s ( AAPL ) ad-blocking software

(-) SBGL (-4.50%) Announces $381 acquisition of Lonmin PLC

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