US close: Stocks end week higher on tax cut hopes

Wall Street ended on a down note on Friday but slightly higher over the latest five-day stretch, its first weekly gain since the end of last month, after the White House indicated that much-awaited tax cuts will arrive before the end of 2017.

The Dow Jones Industrial Average lost 0.15% or 30.95 points to close at 20,547.76, while the S&P 500 gave back 7.15 points or 0.30% to finish at 2,348.69, and the Nasdaq lost 0.11% to 5,910.52.

Meanwhile, West Texas Intermediate retreated $1.09 to $49.62 per barrel.

In parallel, the yield on the benchmark 10-year US Treasury note advanced two basis points to end at 2.25%.

Speaking at the Institute of International Finance Washington Policy Summit, Mnuchin said the White House will unveil a plan "very soon", adding that he hoped passing a tax overhaul will not "take till the end of the year".

"The difference of a little over 1 percent of GDP over a 10-year period of time can generate as much as $2.0trn of revenue in the U.S.. There’s no question: we’re looking at reforms that will pay for themselves with growth."

On Saturday Mnuchin repeated the White House's goal of achieving economic growth of 3% or more, which in turn would make the tax reform plans self-financing by boosting the government´s tax take.

Michael Hewson, chief markets analyst at CMC Markets, said that investors should "do well to remember that a plan is a long way from a policy, and implementation is likely to face significant scrutiny in both the Senate and Congress, something that surprisingly markets would appear to be underestimating, particularly since US politics is rarely that simple."

More broadly, investors were digesting events in Paris late on Thursday, after a police officer was killed and two others injured in a shooting on the Champs-Élysées that was later claimed by so-called Islamic State.

It transpired that the gunman - who was shot dead as he tried to flee the scene - had been under preliminary investigation for terrorism but had been let go due to a lack of evidence.

The shooting comes as the French take to the polls on Sunday for the first round of voting in their presidential elections.

Jasper Lawler, senior market analyst at London Capital Group, said: "The latest polls showing Emmanuel Macron keeping his lead has kept French election nerves at bay. The sense that Marine Le Pen’s success will end at the second round in May dissuaded investors from panicking about any impact the shooting of a policeman in Paris could have on the first round of voting on Sunday."

On news of the shooting, US president Donald Trump tweeted that "France will not take much more of this" and that it "will have a big effect on the presidential election".

There could be some gains for US stocks later in the session as earnings season continues.

General Electric fell 2.38% despite beating first quarter revenue and earnings forecasts, while Honeywell International gained 3.22% after it reported a higher-than-expected quarterly profit, boosted by aerospace and energy sales.

Schlumberger dropped 2.18% after it returned to revenue growth but continues to be weighed by its Latin American business.

Toy maker Mattel tumbled 13.57% after its quarterly results late on Thursday fell short of analysts’ expectations, while Visa rose 0.64% after it posted better-than-expected second-quarter results late on Thursday.

On the data front, Markit’s flash purchasing managers index dropped to 52.7 in April from 53.2 in March. The services gauge fell to 52.5 from 52.8.

A reading above 50 indicates that respondents believe business conditions are improving.

Separately, data showed that sales of US existing home sales rose more than expected in March, to their highest pace in more than 10 years.

Sales were up 4.4% to a seasonally-adjusted annual rate of 5.71m from a downward revised 5.4m in February. March's sales pace is 5.9% above a year ago and surpasses January as the strongest month of sales since February 2007. Economists had been expecting a rate of 5.63m.

Dow Jones - Risers

Microsoft Corp. (MSFT) $66.40 1.37%
United Technologies Corp. (UTX) $114.99 0.92%
Home Depot Inc. (HD) $150.00 0.86%
Boeing Co. (BA) $180.38 0.60%
E.I. du Pont de Nemours and Co. (DD) $78.65 0.46%
Intel Corp. (INTC) $36.32 0.39%
Wal-Mart Stores Inc. (WMT) $74.94 0.19%
Travelers Company Inc. (TRV) $119.10 0.19%
3M Co. (MMM) $191.50 0.18%
McDonald's Corp. (MCD) $133.41 0.11%

Dow Jones - Fallers

Verizon Communications Inc. (VZ) $47.25 -2.40%
General Electric Co. (GE) $29.55 -2.38%
JP Morgan Chase & Co. (JPM) $84.52 -1.20%
International Business Machines Corp. (IBM) $160.38 -1.18%
Merck & Co. Inc. (MRK) $61.89 -1.06%
Nike Inc. (NKE) $55.85 -0.98%
Procter & Gamble Co. (PG) $88.62 -0.79%
Goldman Sachs Group Inc. (GS) $216.86 -0.55%
American Express Co. (AXP) $79.59 -0.54%
Exxon Mobil Corp. (XOM) $80.69 -0.40%

S&P 500 - Risers

Rockwell Collins Inc. (COL) $104.70 5.13%
Stanley Black & Decker Inc. (SWK) $137.56 3.65%
Robert Half International Inc. (RHI) $47.18 2.77%
Honeywell International Inc. (HON) $127.08 2.67%
CSX Corp. (CSX) $50.77 2.44%
Tenet Healthcare Corp. (THC) $15.35 2.40%
Tesoro Corp. (TSO) $77.89 1.96%
Valero Energy Corp. (VLO) $65.23 1.76%
Amer Water Works (AWK) $80.51 1.69%
NextEra Energy Inc. (NEE) $133.02 1.64%

S&P 500 - Fallers

Mattel Inc. (MAT) $21.79 -13.57%
Mallinckrodt Plc Ordinary Shares (MNK) $43.52 -3.14%
PVH Corp. (PVH) $98.26 -3.11%
Interpublic Group of Companies Inc. (IPG) $24.39 -3.10%
Baker Hughes Inc. (BHI) $57.68 -3.06%
Kansas City Southern (KSU) $87.99 -2.85%
Viacom Inc. Class B (VIAB) $43.10 -2.77%
Teradata Corp. (TDC) $31.06 -2.76%
National Oilwell Varco Inc. (NOV) $34.65 -2.75%
CBS Corp. (CBS) $66.84 -2.66%

Nasdaq 100 - Risers

CSX Corp. (CSX) $50.77 2.44%
Microsoft Corp. (MSFT) $66.40 1.37%
J.B. Hunt Transport Services Inc. (JBHT) $90.95 1.31%
Netflix Inc. (NFLX) $142.87 1.20%
JD.com, Inc. (JD) $34.35 1.12%
NetEase Inc. Ads (NTES) $268.97 1.06%
Tractor Supply Company (TSCO) $65.60 1.06%
Tesla Inc (TSLA) $305.60 1.02%
Liberty Interactive Corporation - Series A Liberty Ventures (LVNTA) $52.23 0.91%
O'Reilly Automotive Inc. (ORLY) $265.36 0.90%

Nasdaq 100 - Fallers

Mattel Inc. (MAT) $21.79 -13.57%
Viacom Inc. Class B (VIAB) $43.10 -2.77%
Micron Technology Inc. (MU) $27.32 -2.29%
Biomarin Pharmaceutical Inc. (BMRN) $88.47 -1.95%
Regeneron Pharmaceuticals Inc. (REGN) $370.12 -1.67%
Alexion Pharmaceuticals Inc. (ALXN) $116.82 -1.60%
Microchip Technology Inc. (MCHP) $74.43 -1.59%
Western Digital Corp. (WDC) $83.11 -1.54%
Analog Devices Inc. (ADI) $77.63 -1.31%
Twenty-First Century Fox Inc Class A (FOXA) $30.70 -1.19%