Whipsawed by Washington, Wall St ends modestly low



Reuters

By Lewis Krauskopf and April Joyner

NEW YORK, December 1 (Reuters) – Wall Street fell on Friday, hit by developments with an investigation into Russia's alleged participation in the US election, as well as with the progress in a bill in Congress.

The main indexes ended lower after an ABC News report that former national security adviser Michael Flynn was willing to testify that before taking office, President Donald Trump had directed him to contact the Russians.

But the shares recovered most of their initial losses, after Republicans in the US Senate said they had enough support to pbad a broad fiscal review.

Senate news was the latest sign of progress for a fiscal bill closely watched by investors, with the hope that major corporate tax cuts will further fuel the Wall Street record.

"This Flynn thing threw everything down for" We still had it in the context of tax reform, "said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.

" We are at historic highs, so Sometimes, when you receive news of a nature that people want to sell, it becomes a bit exaggerated, "Kinahan said.

The Dow Jones Industrial Average fell 40.76 points, or 0.17 percent, to 24,231.59, the S & P 500 lost 5.36 points, or 0.20 percent, at 2,642.22 and the Nasdaq compound fell 26.39 points, or 0.38 percent, to 6,847.59.

Strong sales have been a rarity on Wall Street this year. at least 1 percent only four times in 2017.

The progress with the tax legislation in the Senate helped boost the actions this week, as well as driving a rotation toward those areas that seem to be about to benefit from lower taxes corporative.

"We have had a a slow growing economy in the last 18 to 24 months. The market has been accumulating in the fastest growing companies, "said Gary Bradshaw, portfolio manager at Hodges Capital in Dallas.

" Now we have an economy that is accelerating in growth … Many of the actions that are have ignored in recent years could become bargains, "said Bradshaw.

The S & P has recovered 18 percent this year, driven by strong global economic data and strong corporate profits in the United States. optimistic investors on some aspects of Trump's domestic agenda, especially tax cuts, news that involves his administration have periodically shaken the markets.

"We have become accustomed to the drama in the White House," said Rob Stein , CEO of Astor Investment Management in Chicago. "Whether or not they prove that there are Russian relationship ties, that does not have a long-term effect on the value of the stock market."

In fact, the initial abrupt sale provoked Wall Street's favorite reaction in recent months: "Buy the dip."

Energy was the best performing sector, with an increase of 0.8 percent. Oil prices stabilized slightly, a day after OPEC and other oil producers agreed to extend production cuts until the end of 2018 to adjust global supplies and support prices.

The advanced issues outnumbered the negatives on the New York Stock Exchange by a ratio of 1.02 to 1; on Nasdaq, a ratio of 1.54 to 1 favored casualties.

Around 8.2 billion shares changed hands in the US stock markets. UU., Well above the daily average of 6.6 billion in the last 20 trading days, according to Thomson Reuters data.





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