US Stocks Fall Ahead of the Tax Bill on Wall Street

US stocks fell ahead of the tax bill code on Wall Street on Tuesday.

The Dow Jones Industrial Average slipped 0.15 percent or 37.45 points to 24,754.75.

The S&P 500 fell 0.32 percent or 8.69 points to 2,681.47, while the S&P Technology sector weighed on most of the major indexes falling 0.5 percent.

The Nasdaq Composite fell 0.44 percent or 30.91 points to 6,963.85.

Strong housing data and domestic home construction was at a 13 month high for November.

Optimism From Investors

The tax bill will lower corporate tax rates from 35 percent to 21 percent, the proposal has been met with optimism from investors who say that it will boost profits and trigger share buybacks and generate higher dividend pay-outs.

Tax Rate Already Priced In

According to Chief investment officer at BMO Private Bank in Chicago, Jack Ablin who said that they have already priced in the tax rate and that although investors are applauding the tax package, they recognize the fact that the central bank may take away what has been given to them over the last couple of years.

Wal-Mart stocks gained 0.9 percent after Citigroup signalled a ‘buy’ upgrade on expectations that their shares will rise more in 2018.

Apple fell 1.1 percent following the downgrade by Instinet broker to ‘neutral’.

On the NYSE declining issues outnumbered advancing ones by a 1.81 to 1 ratio.

On the US exchanges volume was 6.6 billion shares.

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