Investors grew optimistic Friday after the Trump administration cleared a hurdle to cut taxes. As Fred Katayama reports, bank and tech stocks led the rally.
The passage of a Senate budget draft lifted Wall Street Friday to close at record highs. Bank stocks rose, and tech stocks recovered. Investors growing optimistic after the Trump administration cleared a critical hurdle to cut taxes. Lisa Erickson of U.S. Bank Wealth Management: SOUNDBITE: LISA ERICKSON, SENIOR VICE PRESIDENT, U.S. BANK WEALTH MANAGEMENT, (ENGLISH) SAYING: "We do believe that the passage of the budget resolution does give the market some additional hope. And I think what you're going to see on the fiscal policy front is that as people continue to monitor and they see some positive developments, they will begin to price that into the equity market." PayPal shares shot higher, helping lift tech stocks. Quarterly profit jumped up sharply, and the payments company raised its earnings forecast. Weighing on the Dow: Procter & Gamble. The consumer products maker's tepid quarterly sales narrowly missed analysts' estimates. Home builders shares rose after U.S. existing home sales unexpectedly rebounded in September. In Europe, the major markets closed flat as a drop in consumer stocks were offset by a gain in financial shares.