Tech stocks dragged down Wall Street as investors grew skeptical over the U.S. tax bill's prospects. Fred Katayama reports.
Tech stocks dragged down Wall Street and European markets Thursday. Amercan investors grew skeptical over the tax bill's prospects as they considered a Senate Republican plan that would delay corporate tax cuts. The big stock market rally this year was partly fueled on President Donald Trump's vow to slash taxes. Hennion and Walsh CIO Kevin Mahn: SOUNDBITE: KEVIN MAHN, CHIEF INVESTMENT OFFICER, HENNION AND WALSH, (ENGLISH) SAYING: "I think this is a short-term bout of volatility caused by the announcement that perhaps corporate taxes wouldn't be phased in Day One. Because the market was anticipating Day One boost to earnings that could drive some additional stock returns this year, I don't think it's going to be lasting. I think there's some money sitting on the sidelines that's going to look at this as an attractive buy opportunity." Disney shares falling after hours. The media company's quarterly revenue dropped, and adjusted earnings fell short of analysts' estimates. Kohl's among the S&P's bottom movers. Hurricanes that caused the closure of some of its department stores helped drive profit down 18 percent, and profit margins slid. But rival Macy's doubled its profit by tightly controlling its inventory. Its shares rose. Coty looking better. Shares shot higher after the beauty maker behind brands like Cover Girl and Rimmel posted adjusted profit that beat expectations. The number of Americans filing for jobless benefits rose more than expected last week. They remain well below the 300,000 level that signals a healthy labor market. In Europe, a drop in tech and materials shares yanked the markets sharply lower.