Shares fade after the execution of a record such as the US tax bill.


NEW YORK (Reuters) – Wall Street faded after record highs on Monday, while yields in dollars and Treasuries rose after a major US fiscal review removed a major hurdle.

PHOTO OF THE ARCHIVE: The operators work in the floor of the New York Stock Exchange (NYSE) in New York, USA. US, On November 28, 2017. REUTERS / Brendan McDermid

Markets digested the approval of the US Senate on Saturday of the largest tax law change since the 1980s, bringing President Donald Trump closer to his goal of cut taxes on businesses.

On Wall Street, the S & P 500 .SPX benchmark index set a record high intraday, but then retreated and ended lower, while Dow industrials still achieved a record close. The MSCI stock index worldwide .MIWD00000PUS gained 0.14 percent and also reached a historic high, but was far from its peak session.

The Republican tax plan is expected to add $ 1.4 trillion in 10 years to the national debt of $ 20 trillion to finance changes that, they say, would further boost an already growing economy.

The Dow Jones Industrial Average .DJI increased 58.46 points, or 0.24 percent, to 24,290.05, the S & P 500 .SPX lost 2.78 points, or 0.11 percent, to 2,639.44 and the Nasdaq Compound .IXIC dropped 72.22 points, or 1.05 percent, to 6,775.37.

Some of the biggest winners were from areas that are expected to benefit from a lower corporate tax rate. The S & P 500.SPXBK bank index rose 2.3 percent, while the Dow Jones .DJT transport average jumped 1.8 percent.

But the technology sector .SPLRCT, which led the record recovery of Wall Street this year, fell 1.9 percent.

"You're seeing what amounts to a pretty significant turnover in the market, the biggest evidence of that is technology," said Chuck Carlson, CEO of Horizon Investment Services in Hammond, Indiana.

"People are taking some profits off the table in sectors and areas that have been very strong this year," Carlson said.

Shares of Aetna ( AET.N ) fell 1.4 percent after the operator of the pharmacy chain CVS Health ( CVS.N ) agreed to buy the health insurer for $ 69 billion. CVS shares fell 4.6 percent.

The German stock price index, DAX board, is listed on the stock exchange in Frankfurt, Germany, November 30, 2017. REUTERS / Staff / Remote

In Europe, the pan-European FTSEurofirst 300 index .FTEU3 rose 0.97 percent.

Earnings in dollars helped the German DAX .GDAXI exposed to the dollar jump from a minimum of two months, an increase of 1.5 percent.

The dollar rose against a basket of currencies after the tax package advanced.

The dollar index .DXY rose 0.26 percent, with the euro EUR = 0.26 percent to $ 1.1858. The Japanese yen weakened 0.23 percent against the dollar to 112.38 per dollar.

"The dollar bulls are pinning their hopes on the broad fiscal agreement that leads to a faster rate of interest rate hikes by the Federal Reserve," said Jake Spark, US corporate coverage manager at Western Union Business Solutions, in Washington.

The 10-year reference notes US10YT = RR fell for the last time 3/32 in price to yield 2.3723 percent, from 2,363 percent at the end of Friday.

Earnings in dollars and Treasuries were limited by political concerns in Washington, as investors remained concerned about an investigation into Russia's attempts to influence Trump's election in 2016, badysts said.

Oil fell in profit-taking while the market observed signs of higher production in the United States, although prices remained close to the highs of two recent years thanks to the decision of OPEC and other producers to extend the production cuts.

Brent LCOc1 crude futures were set at $ 1.28, or 2 percent, at $ 62.45 a barrel. West Texas Intermediate CLc1 futures were down 89 cents, or 1.5 percent, at $ 57.47.

The gold XAU spot = fell 0.3 percent to $ 1,276.70 an ounce.

Additional reporting by Gertrude Chavez-Dreyfuss in New York, Sruthi Shankar and Rama Venkat Raman in Bengaluru, Sujata Rao in London; Edition of Dan Grebler and Andrew Hay

Our standards: The principles of trust of Thomson Reuters.
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