9-28-17 1:58 PM EDT | Email Article

By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica

Financial shares fall, but material sector advances

The Dow industrials traded slightly higher Thursday afternoon as shares of McDonald's rallied, but technology lagged behind, a day after President Donald Trump offered further details on a potential, tax overhaul that could jolt Wall Street stocks up.

What are stocks doing?

The Dow Jones Industrial Average rose 44 points, or 0.2%, at 22,385, with shares of McDonald's Corp., (MCD) delivering a lift to blue chips. The S&P 500 was less than a point higher at 2,506, having ended about 0.1% below its closing record on Wednesday. Financials and consumer-discretionary stocks were off 0.2%. Those groups were offset by a rise in the material sector, up 0.5%, headlined by a 2.9% rise in shares of Eastman Chemical Co. (EMN).

The Nasdaq Composite Index shed 7 points, or 0.1%, to 6,445. The tech-heavy index jumped more than 1% on Wednesday.

The Russell 2000 slipped 0.2% to 1,482. The index of small-capitalization companies ended at a record Wednesday.

The Dow Jones Transportation Average , meanwhile, hit an intraday record at 9,903 on Thursday, and was most recently up 0.4% at 9,884.32. The gauge, which tracks some of the largest U.S. airlines, railroads and trucking companies, also closed at a record on Wednesday.

What's driving the market?

The latest economic data painted a mixed picture of the economy. Jobless claims rose by 12,000 in the latest week, although this spike was tied to Hurricanes Irma and Harvey, which devastated Florida and parts of Texas. Separately, a read on second-quarter economic growth was raised (http://www.marketwatch.com/story/economys-2nd-quarter-growth-raised-to-31-2017-09-28) to 3.1% from 3%.

Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

What are market participants saying?

While stocks rose Wednesday as President Donald Trump announced his "once-in-a-generation" tax overhaul (http://blogs.marketwatch.com/capitolreport/2017/09/27/republicans-roll-out-tax-cut-plans-for-individuals-and-companies-live-blog/), the excitement that lifted equities was replaced by questions on how the plan will be implemented.

"We shall wait and see how Trump's plans evolve into legislation," said Deutsche Bank's strategist Jim Reid in a note on Thursday. "Our U.S. team's early take is that they see a prospect of some reforms occurring at the corporate level (particularly for small corporates), but the potential for substantive reform of personal tax is much lower."

Which stocks are in focus?

Streaming-software and device-maker Roku Inc. jumped 57% in its trading debut, after its initial public offering priced at $14 a share on Wednesday (http://www.marketwatch.com/story/roku-sets-14-per-share-ipo-price-on-13-billion-valuation-2017-09-27).

Read: 5 things to know about Roku (http://www.marketwatch.com/story/roku-ipo-5-things-to-know-about-the-streaming-device-company-2017-09-05)

(http://www.marketwatch.com/story/roku-ipo-5-things-to-know-about-the-streaming-device-company-2017-09-05)Exa Corp.(EXA) surged 43% after French software company Dassault Systemes SE (DASTY) said it would buy the U.S. simulation-software developer in a cash deal valued at $400 million (http://www.marketwatch.com/story/dassault-systemes-to-buy-exa-for-400-million-2017-09-28).

(http://www.marketwatch.com/story/dassault-systemes-to-buy-exa-for-400-million-2017-09-28)Shares of BlackBerry Ltd.(BB.T) jumped 15% after a surprise profit and revenue beat (http://www.marketwatch.com/story/blackberrys-stock-soars-after-surprise-profit-revenue-beat-2017-09-28).

(http://www.marketwatch.com/story/blackberrys-stock-soars-after-surprise-profit-revenue-beat-2017-09-28)Southwest Airlines Co.(LUV) shares were little changed after it said natural disasters would have a negative impact on its operating revenue.

Shares of McDonald's, up 2.4%, are looking at their best daily gain since July 25, with the Dow component contributing 26 points to the benchmark.

Read:These companies are expected to increase sales the most in 2018 (http://www.marketwatch.com/story/these-companies-are-expected-to-increase-sales-the-most-in-2018-2017-09-26)

What are other assets doing?

The ICE U.S. Dollar Index stalled after hitting a one-month high (http://www.marketwatch.com/story/dollar-index-stalls-after-striking-one-month-highs-2017-09-28).

Gold futures fell to a six-week low (http://www.marketwatch.com/story/gold-drops-to-6-week-low-as-dollar-continues-march-higher-2017-09-28), squeezed by dollar strength. Oil futures were pushing higher.

European stocks wavered, with just modest gains for some regional indexes. Asian markets closed mostly lower (http://www.marketwatch.com/story/nikkei-up-but-chinese-stocks-dip-on-profit-taking-ahead-of-holiday-2017-09-27), outside of a 0.4% gain for the Nikkei 225 .

Read:Japan parliament dissolved, snap elections called: report (http://www.marketwatch.com/story/japan-parliament-dissolved-snap-elections-called-report-2017-09-28)

 

(END) Dow Jones Newswires

September 28, 2017 13:58 ET (17:58 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
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