Here are three things you must know at midday on Monday, Dec. 4:

1. -- The Dow Jones Industrial Average soared on Monday, Dec. 4, and the S&P 500 posted a sharp increase as the Senate passed its version of U.S. tax reform.

Both indexes traded at record intraday highs. At one point Monday, the Dow had risen more than 300 points but has since come off that high to trade with a gain of about 215 points.

Bank stocks were sharply higher on Monday, rising as investors reacted to passage of a Senate tax reform bill that could set the stage for the biggest legislative win under Donald Trump's administration.

JPMorgan Chase & Co. (JPM) - Get JPMorgan Chase & Co. (JPM) Report jumped 2.2%, and Goldman Sachs Group Inc. (GS) - Get Goldman Sachs Group, Inc. (GS) Report rose 1%. The Financial Select Sector SPDR ETF (XLF) - Get Financial Select Sector SPDR Fund Report gained 1.9%.

Watch: Disney Helps Power the Dow to a Record High

Industrial stocks also were higher as investors turned to cyclical plays. Boeing Co. (BA) - Get Boeing Company Report rose 2.8%, and Union Pacific Corp. (UNP) - Get Union Pacific Corporation Report gained 5.2%. The Industrial Select Sector SPDR ETF (XLI) - Get Industrial Select Sector SPDR Fund Reportrose 1.7%.

Tech shares were lagging on valuation concerns, pulling the Nasdaq lower by 0.5%. Shares of Advanced Micro Devices Inc. (AMD) - Get Advanced Micro Devices, Inc. Report fell 7%, while Nvidia Corp. (NVDA) - Get NVIDIA Corporation Report tumbled 4.9%.

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2. -- Aetna Inc. (AET) shares turned slightly lower by midday Monday after agreeing to be bought by CVS Health Corp. (CVS) - Get CVS Health Corporation Report for $69 billion. CVS shares were falling 5%. Standard & Poor's placed CVS ratings on creditwatch negative after the announcement of the deal.

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Is the combination a reaction to Amazon Inc.'s (AMZN) - Get Amazon.com, Inc. Report dive into healthcare?

Amazon recently obtained wholesale distribution licenses from pharmaceutical boards in multiple states, including New Jersey, Connecticut, Michigan and Arizona. It's also reportedly in preliminary talks with generic drugmakers including Mylan NV (MYL) - Get Mylan N.V. (MYL) Report and Novartis AG's (NVS) - Get Novartis AG Sponsored ADR Report Sandoz.

One could make the case that the deal also hurts CVS competitor Walgreens Boots Alliance Inc. (WBA) - Get Walgreens Boots Alliance Inc Report , as a tandem pharmacy provider and health insurer could help funnel sales away from Walgreens.

Walgreens shares fell 0.7% at midday on Monday.

JJ Kinahan: The CVS-Aetna Deal Will Be a Big Test for the Government

3. -- Broadcom Ltd. (AVGO) - Get Broadcom Inc. Report  took its hostile $130 billion bid to buy Qualcomm Inc. (QCOM) - Get QUALCOMM Incorporated Report  to the chipmaker's shareholders by launching a total boardroom takeover effort intended to help propel its deal effort. 

The semiconductor company's boardroom battle was expected as Qualcomm last month said it was rejecting Broadcom's unsolicited offer of $70 in cash and stock. The deal, should it ever be consummated, would represent the largest ever technology combination.

TheStreet's Ron Orol said he believes Broadcom's move will likely lead to a higher bid.

Broadcom shares declined 2.9% on Monday, while shares of Qualcomm tumbled 2%, in sympathy with other shares in the tech sector.

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