U.S. stocks rose Wednesday after a better-than-expected report on business spending and ahead of highly anticipated details on tax reform.
“The whole sentiment of the strong market is I think due to the tax relief hope,” said Peter Cardillo, chief market economist at First Standard Financial. “Today we should get an outline of a tax plan which will be beneficial to growth and obviously corporate growth. I think we could be in a solid climb today.”
The GOP framework on tax reform is expected Wednesday, and President Donald Trump is scheduled to discuss his administration’s tax plan later in the day. For months, many market strategists have laid out how the White House’s proposed tax reform could significantly increase corporate profits, particularly for financials and small-cap stocks.
Financial stocks rose more than 1 percent to lead S&P 500 advancers, followed by gains of more than half a percent in information technology stocks. Utilities led four sectors lower.
U.S. crude oil futures traded above $52 a barrel ahead of weekly oil inventories.
“You get a rotation in two underowned sectors, financials and energy, that could be the driver,” said Art Hogan, chief market strategist at Wunderlich Securities.
Nike had the greatest negative impact on the index, falling more than 4.5 percent after reporting its slowest quarterly sales growth in nearly seven years and forecasting a further drop in revenue from North America. The athleticwear company did report a 9 percent increase in Greater China sales.