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Wall Street indexes open at record highs as Q4 off to strong start

Nine of the 11 major S&P indexes were positive on Monday

Reuters 

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A street sign for Wall Street is seen outside the New York Stock Exchange in Manhattan, New York City

All the three major U.S. stock indexes opened at record highs on Monday, the first trading day of the fourth quarter, as investors bet on President Donald Trump's tax reform plan making some headway.

Shares of Casino operators MGM Resorts International, Melco Resorts & Entertainment, Wynn Resorts and Las Vegas Sands slipped after a gunman killed at least 50 people in Las Vegas on Sunday.

Gunmakers Sturm Ruger & Co and American Outdoor Brands moved higher after the mass shooting at a country music festival.

Investors, however, focused on Trump's tax reform.

"The market is optimistic today, hoping that some kind of tax reform package will be discussed at Washington," said Robert Pavlik, chief market strategist at Boston Private in Fairfield, Connecticut.

"Investors are also beginning to position themselves for the earnings season and the fourth quarter."

has called for tax cuts for most Americans in his proposal but has drawn criticism that the plan favours business and the rich and could add trillions of to the deficit.

Despite remaining below the 2 percent target set by the Federal Reserve, Fed Chair Janet Yellen's recent speech has suggested the odds of an in December remain high.

has promised a decision this month on who is likely to be the new chief of the U.S. central bank and has met with former Federal Reserve Governor Kevin Warsh and three others.

President would soon have to announce who would chair the Fed and many do think that he may favour someone who would take a more aggressive approach towards monetary policy, said Naeem Aslam, chief market analyst at ThinkMarkets UK.

U.S. stocks are at record levels, with each of the major indexes ending the third quarter with solid gains on Friday.

Nine of the 11 major indexes were positive on Monday, led by and sectors.

Oil fell more than $1 a barrel to below $56 on Monday as a rise in U.S. drilling and higher output put the brakes on a rally that helped prices to register their biggest third-quarter gain in 13 years.

Federal Reserve Bank of Dallas President Robert Kaplan scheduled to participate in a moderated Q&A session hosted by the Dallas Federal Reserve at 2:00 p.m ET.

At 9:48 a.m. EDT the industrial average was up 49.02 points, or 0.22 percent, at 22,454.11, the 500 was up 2.55 points, or 0.10 percent, at 2,521.91 and the was up 12.72 points, or 0.2 percent, at 6,508.68.

was up 3.3 percent in early trading.

Shares of Nordstrom fell 5 percent following a New York Post report that talks to take the department store operator private were faltering.

Citrix Systems was the top stock on the 500, up 3.6 percent after Wells Fargo upgraded the cloud-computing company to "outperform".

Advancing issues outnumbered decliners on the by 1,417 to 1,224. On the Nasdaq, 1,476 issues rose and 1,010 fell.

First Published: Mon, October 02 2017. 20:39 IST
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