Wall Street set for strong day on tax deal

Wall Street set for strong day on tax deal”

U.S. stock index futures pointed to a higher open on Tuesday, as investors turned their attention to new data and earnings, while keeping an eye on key domestic news. The biggest contributor to the early rally was Goldman Sachs stock, which shot up $5.05, or 2.0%, to add about 34.8 points to the Dow's price.

Wall Street was primed for a another record-setting day after the US Senate voted to approve a wide-ranging tax overhaul.

UBS strategists project that overall S&P 500 earnings would rise by 6.5 percent should the corporate tax rate fall to 25 percent and increase by 9.5 percent should the rate go to 20 percent.

That put Senate Republicans on a collision course with Republicans in the U.S. House of Representatives, whose own tax bill repealed the corporate AMT and who are already calling for the tax to be eliminated in the final legislation.

Nasdaq futures rose slightly after a selloff in tech stocks on Monday pulled down the tech-heavy index and weighed on the S&P 500.

Most of the 11 S&P sectors are trading higher, led by financials (+1.9%), telecom services (+1.5%), industrials (+1.4%) and consumer discretionary (+1.3%); on the downside, the tech sector is among the weakest spaces, currently unchanged.

Toll Brothers fell 5.74 percent after the company's quarterly profit and revenue missed estimates and it forecast a decrease in full-year 2018 adjusted gross margin.

"You don't want things to slip away at the end of the year, so it's tempting to take things off the table, maybe buy something that's been beaten up", said Frank Gretz, a analyst for Wellington Shields & Co, a brokerage in New York. Bank of America shares jumped 1 percent in the premarket following the report.

Declining issues outnumbered advancing ones on the NYSE by a 1.80-to-1 ratio; on Nasdaq, a 1.83-to-1 ratio favored decliners.

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