Thursday's early afternoon trade: indexes rise as investors assess tax bill gains

Wall Street's main indexes rose on Thursday as investors were hopeful that lower corporate tax rates would allow companies to spend additional capital on dividends, new projects and wages, which could give a boost to the overall economy. The two chambers of the US Congress approved a $1.5-trillion tax bill this week that would slash corporate tax rates to 21 percent from 35 percent.
A number of companies including AT&T, Wells Fargo and Boeing have promised higher pay for workers or more investment in training. Some others have forecast a rise in earnings due to tax cuts. "The impact is still a work-in-progress, tax cuts are believed to add to earnings. But the unknowns are to what extent the company behaviour changes in terms of capex policy, buybacks and wage increases," said Terry Sandven, chief equity strategist at US Bank Wealth Management in Minneapolis.
At 12:29 pm ET (1729 GMT), the Dow Jones Industrial Average was up 100.33 points, or 0.41 percent, at 24,826.98 - within striking distance of the 25,000 mark. The S&P 500 was up 9.66 points, or 0.36 percent, at 2,688.91, while the Nasdaq Composite was up 23.46 points, or 0.34 percent, at 6,984.41.
Financial and energy stocks led gains among the 11 major S&P sectors. Wells Fargo jumped 2.44 percent, JPMorgan 1.5 percent and Goldman Sachs 2.3 percent, lifting the financial index 0.9 percent.
Adding to the upbeat sentiment, third-quarter GDP data showed the US economy grew at its fastest pace in more than two years, powered by robust business spending. Chevron shares jumped more than 3 percent to a record high of $124.69 after broker Cowen & Co raised price target on the stock by nearly a third to $160.