Wall Street set for higher open as tax bill concerns wane

Published 15/12/2017 in Business, Economy & Finance

Wall Street set for higher open as tax bill concerns wane
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., December 14, 2017. REUTERS/Brendan McDermid

(Reuters) – Wall Street was set to open higher on Friday, recovering from a bout of uncertainty surrounding the passage of the Republicans’ much-awaited tax overhaul bill.

The S&P 500 fell the most in a month on Thursday after Republican Senators Marco Rubio and Mike Lee declined to back the bill without changes to child tax credits.

“What Rubio was looking for is more help for the lower-income people, child tax credits. That’s something that can easily be adjusted, so the bill will move forward,” said Andre Bakhos, managing director at Janlyn Capital.

“Things are looking like this (tax bill) will get through. But the market is going to be sensitive to any inkling that it’s going to be a problem.”

The S&P 500 and the Dow were on track to record four weeks of gains in a row, while the Nasdaq was set to post its first rise in three weeks.

Bitcoin rose to an all-time high of $17,751 on Bitstamp exchange in the day, boosting related stocks, including Riot Blockchain (RIOT.O), Overstock.com (OSTK.O), Xunlei (XNET.O) by 1 percent to 11 percent in early premarket trading.

Oracle’s (ORCL.N) shares slipped 6.85 percent after the company’s forecast for the current-quarter cloud revenue growth missed estimates and the second quarter sales in the business disappointed.

CSX Corp (CSX.O) fell over 12 percent and was the most traded stock on all U.S. exchanges premarket after the No.3 U.S. railroad said its Chief Executive Hunter Harrison was taking medical leave, a decision that comes in the middle of a controversial turnaround plan.

Costco Wholesale (COST.O) shares rose about 3 percent after the retailer’s quarterly profit and revenue beat analysts’ estimates.

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