Hopes President Trump is making strides with his new tax plan lifted financial shares and Wall Street Wednesday. Fred Katayama reports.
Wall Street shot north Wednesday. Financial shares led the way, partly driven by hopes President Donald Trump's administration may be making progress with the new tax plan he unveiled today. UBS Asset Management's Evan Brown: SOUNDBITE: EVAN BROWN, DIRECTOR OF ASSET ALLOCATION, UBS ASSET MANAGEMENT, (ENGLISH) SAYING: "The anticipation for this event has gotten the markets a little bit excited here. You're seeing yields higher, dollar higher and there are new hopes we're going to get a little bit of a second relfation trade here." Rising bets of a third interest rate hike this year after Fed Chair Janet Yellen's comments Tuesday lifted shares of big banks like Bank of America and Goldman Sachs. Nike shares fell, weighing on the Dow. The athletic apparel maker's quarterly sales grew at its slowest pace in nearly seven years. Shares of Micron Technology went the other way. The memory chip maker swung to a quarterly profit from a loss, and it issued a strong earnings forecast for the current quarter. In economics news, the big increase in new orders for capital goods in August surprised Wall Street. But sales of previously owned homes fell more than expected as a supply shortage drives up home prices. In Europe, markets rallied as Trump's tax plan fueled demand for bank stocks.