Investing.com – US stocks closed modestly higher on Monday as uncertainty over tax reform continued to weigh on sentiment while a slump in industrials and energy capped gains in the broader market.
The Dow Jones Industrial Average closed higher at 23,451.26. The S&P 500 closed 0.10% higher while the Nasdaq Composite closed at 6757.60, up 0.10%.
In what was a quiet day on the economic calendar, investors continued to be monitor the progress of tax reform as the House of Representatives is expected to vote this week on a major tax reform bill.
Investor expectations of the government pushing through tax reform before year-end have dropped recently as the Senate’s version of the tax bill differs significantly from the GOP’s plan.
Republicans believe that cuts to the corporate tax rate to 35% from 20% should take effect immediately while the Senate proposes a delay until 2019.
President Donald Trump twitted on Monday that he was “proud” of lawmakers for getting “close” to approving a tax bill.
Also weighing on broader market gains was a slump in industrial led by a more than 8% slump in shares of General Electric after the company said it would slash its dividend by 50% as part of its turnaround plan and lowered its guidance on earnings for 2018.
Financials, mostly banks, rebounded from recent lows amid easing fears over a flattening yield curve - long-term interest rates falling more than short-term interest rates or short-term rates increasing more than long-term rates.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: Home Depot (NYSE:HD) up 2.5%, McDonald’s Corporation (NYSE:MCD) up 1.3% and Procter & Gamble Company (NYSE:PG) up 0.9%
General Electric Company (NYSE:GE) down 8.4%, The Travelers Companies Inc (NYSE:TRV) down 1.3% and United Technologies Corporation (NYSE:UTX) down 0.8%, were among the worst Dow performers of the session.