Dow ends at record amid tech sell-off

Tax-cut euphoria elevates Wall Street to record high

Cuts to the corporate tax rate could boost earnings growth and help the long USA stock rally keep going, investors and analysts say. "It's unlikely to materially change the growth trajectory, but it is likely to materially change earnings growth".

Union Pacific (UNP) UPS (UPS) and FedEx (FDX) turned in some of the transportation sector's best performances.

By mid-afternoon, the Dow Jones Industrial Average rose 199.59 points, or 0.82 percent, to 24,431.18, the S&P 500 gained 14.62 points, or 0.55 percent, to 2,656.84 and the Nasdaq Composite dropped 11.57 points, or 0.17 percent, to 6,836.02. Some analysts also say technology stocks in the S&P 500, which have almost doubled the broad index's gains this year, have been vulnerable to a pullback.

Analysts say the Republican plan to cut corporate tax rates has contributed to a shift out of stocks that have outperformed this year into those expected to benefit the most from the overhaul.

Technology .SPLRCT has been the best performing S&P index this year, rising about 34 percent.

"It's not that the tax bill is negative for tech companies", said Ernie Cecilia, chief investment officer at Bryn Mawr Trust.

"The big story is indeed the tax reform passage".

Adding to the uncertainty is the work that remains for the tax overhaul to become law.

Tax-cut euphoria elevates Wall Street to record high

Friday is also the day the government will release its monthly jobs report, one of the last major economic reports before the Federal Reserve's meeting next week on interest rates.

And hanging over everything in Washington is the investigation that continues into Russia's involvement with last year's presidential election. While the U.K.'s FTSE 100 Index rose by 0.5 percent, the French CAC 40 Index and the German DAX Index jumped by 1.4 percent and 1.5 percent, respectively.

Disney rose about 4.5 percent, Fox 3.7 percent and Viacom 4 percent. Japan's Nikkei 225 Index fell by 0.5 percent, while Hong Kong's Hang Seng Index rose by 0.2 percent.

Insurer Aetna shed 1.4 per cent after agreeing to be acquired by drugstore chain CVS Health for US$69 billion in a move that would broaden the pharmacy's traditional functions to include clinics and more nuts-and-bolts health services.

On the currency front, the USA dollar is trading at 112.90 yen compared to the 112.17 yen it fetched at the close of NY trading on Friday. The euro fell to $1.1855 from $1.1893, and the British pound rose to $1.3471 from $1.3468. Brent crude, the worldwide standard, fell $1.28 to $62.45 a barrel in London.

Microsoft (NASDAQ:) down 3.8%, Visa Inc (NYSE:) down 3% and UnitedHealth Group Incorporated (NYSE:) down 2.4%, were among the worst Dow performers of the session.

Gold dipped $4.60 to settle at $1,277.70 per ounce, silver lost 2 cents to $16.37 and copper was close to flat at $3.09 per pound.

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