GE slump, tax plan doubts pressure Wall St

Cornelia Mascio
Novembre 14, 2017

Nov 13 (Reuters) - Wall Street was little changed in late morning trading on Monday as GE's dismal outlook weighed on indexes and investors fretted over the future of the US tax reform plan.

General Electric fell 3.5 percent after the industrial conglomerate cut its 2018 profit forecast, slashed dividend and unveiled a restructuring plan.

Shares of the industrial conglomerate fell 7.6 percent as investors anxious that plans for a years-long transformation did not show how the slimmed-down company would generate cash to justify its stock valuation.

The S&P and the Dow ended the week lower for the first time in nine weeks on Friday after Senate Republicans unveiled a new tax plan that differed from the House of Representatives' version.

"The process is moving forward".

"US stocks are beginning the week lower, joining in a global equity slide as investor concerns in regard to the potential for a successful tax overhaul in the U.S. continue to rise", Schwab said in its morning market commentary.

"The real difficulty will be pulling the two things together".

Absent any major news over the weekend or data releases Monday, investors appear to be continuing to pull cash out amid concerns President Donald Trump's long-promised corporate tax cuts may be delayed or watered down.

At 10:48 a.m. ET (1448 GMT), the Dow Jones Industrial Average was down 1.93 points, or 0.01 percent, at 23,420.28, the S&P 500 was down 0.94 points, or 0.04 percent, at 2,581.36 and the Nasdaq Composite was down 6.56 points, or 0.1 percent, at 6,744.38.

Industrial stocks were the biggest laggards after GE's decline.

Toymaker Mattel jumped about 20 percent after a report that rival Hasbro has made an approach to acquire the company.

The broader S&P 500 also fell 0.2 percent to 2,577.21, while the tech-heavy Nasdaq dropped almost 0.3 percent to 6,732.4.

Qualcomm rose 1.33 percent after the chipmaker rejected rival Broadcom's $103-billion takeover bid, saying the offer "dramatically" undervalued the company.

Declining issues outnumbered advancers on the NYSE by 1,581 to 1,229. On the Nasdaq, 1,788 issues fell and 655 advanced.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE