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.
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 Report) rose 2.8%, and Union Pacific Corp. (UNP - Get Report) gained 5.2%. The Industrial Select Sector SPDR ETF (XLI - Get Report) rose 1.7%.
Tech shares were lagging on valuation concerns, pulling the Nasdaq lower by 0.5%. Shares of Advanced Micro Devices Inc. (AMD - Get Report) fell 7%, while Nvidia Corp. (NVDA - Get Report) tumbled 4.9%.
2. -- Aetna Inc. (AET) shares turned slightly lower by midday Monday after agreeing to be bought by CVS Health Corp. (CVS - Get Report) for $69 billion. CVS shares were falling 5%. Standard & Poor's placed CVS ratings on creditwatch negative after the announcement of the deal.
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 Report) and Novartis AG's (NVS - Get Report) Sandoz.
One could make the case that the deal also hurts CVS competitor Walgreens Boots Alliance Inc. (WBA - Get 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 Report) took its hostile $130 billion bid to buy Qualcomm Inc. (QCOM - Get 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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