On Monday, U.S. stock futures indicated a strong open for Wall Street after the U.S. Senate passed its version of the tax bill, bringing President Donald Trump closer to his vow to cut corporate taxes to stimulate growth.
Dow futures grew over 200 points, while the Nasdaq and the S&P 500 both showed increases of half a percent. Bank and industrial stocks were some of the initial gainers. Bank of America and JPMorgan increased over 2 percent, while Caterpillar and Boeing showed gains of over 1.5 percent.
This year, the S&P 500 has gained about 18 percent because of strong corporate earnings and solid economic growth but also on the optimism that Trump’s proposal of corporate tax cuts and looser regulations would be passed. On Saturday, the Senate approved their version of the tax bill in a 51-49 vote. The Senate and House of Representatives will settle their individual versions prior to coming into law.
This year’s largest corporate acquisition, drugstore chain operator CVS Health agreed to purchase health insurer Aetna for $69 billion. Aetna shares rose 2.5 percent in premarket trading, while CVS shares dropped nearly 2 percent. General Cable gained 36 percent following its rival Prysmian agreement to purchase the cable maker, valuing the company at about $3 billion. Blue Apron gained 6.8 percent after Barclays upgraded the meal-kit delivery’s stock to “equal-weight”.
Wall Street indexes closed lower on Friday with concerns over progress in the investigation into Russia’s suspected involvement in the 2016 U.S. presidential election.
The Commerce Department is prepared to publish October’s factory orders data, which is anticipated to reveal a 0.4 percent decline, compared to the increase of 1.4 percent from the month before. The data is due at 10:00 a.m. ET.
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Futures snapshot at 6:58 a.m. ET:
Dow e-minis gained 222 points with 32,658 contracts traded.
S&P 500 e-minis gained 16.5 points with 197,440 contracts traded.
Nasdaq 100 e-minis gained 30.25 points with 34,591 contracts traded.