U.S. stocks traded at record highs Monday, Dec. 4, with the Dow Jones Industrial Average adding about 280 points to renew its push toward 25,000 as investors reacted to passage of a Senate tax reform bill that could set the stage for the biggest legislative win under President Donald Trump's administration.
CVS Health Corp.'s (CVS) $69 billion play for Aetna Inc. (AET) , which is priced at $207 in cash and shares, took its toll on both participants, however, with CVS falling 3% and Aetna rising only 1.7% -- around half of what had been expected in premarket trading -- to $184.33.
The broader S&P 500 rose 16 points, or 0.6%, while the Nasdaq turned slightly lower. Big name retailers such as Target Corp. (TGT) , Macy's Inc. (M) and J.C. Penney Co. (JCP) were firmly in the green.
The early market moves will likely at least partially offset Friday's massive selloff, which saw the Dow tumble 300 points after reports -- later corrected by ABC News -- that suggested former National Security Adviser Michael Flynn had been instructed by Trump's election campaign to make contact with Russian officials. Flynn pleaded guilty to lying to federal investigators into Trump's campaign ties with Russia and said he would cooperate with the ongoing probe.
Senate lawmakers passed their controversial tax reform bill Friday, entirely on party lines, setting up what could be weeks of horse-trading with their House counterparts in Congress to deliver what U.S. Vice President Mike Pence called a "middle class miracle."
Global oil prices were also active, but prices were heavy following last week's extension of OPEC production cuts in Vienna owing to the build-up of U.S. drilling installations and the assumption of faster domestic crude production in response to the OPEC/Russia agreement.
West Texas Intermediate contracts for January fell 1.4% to $57.54 a barrel.
The U.S. dollar surged against a basket of its global peers and U.S. Treasury bond yields breached what could be a technically significant level in reaction to the Senate deal, that could lead to recalibration of rate hikes from the Federal Reserve.
Factory orders in the U.S. fell 0.1% in October.
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