Consumer stocks limit gains on Wall Street

By Sruthi Shankar

(Reuters) - Losses in consumer stocks including Nike reined in gains for Wall Street's main indexes on Wednesday after a burst of optimism fueled by hints President Donald Trump may finally be making headway on long-promised tax cuts.

Trump proposed the biggest tax overhaul in three decades, but offered scant details about how to pay for the cuts without dramatically driving up federal deficits.

If passed, the plan would be Trump's first significant legislative win since taking office in January.

"While I think there is optimism, time will tell us how much of an impact that (tax plans) will have on the market," said Victor Jones, director of trading at TD Ameritrade.

"Investors are going to look for whether or not this plan will get any bipartisan support or at least full support of the Republican party."

Comments from Federal Reserve Chair Janet Yellen have bolstered the case for a December interest rate hike, supporting the market so far this week.

Traders now see an 81.4 percent chance of a December rate hike, compared with 71.4 percent a week ago, according to CME Group's FedWatch tool.

The dollar and U.S. Treasury yields rose after a better-than-expected reading on U.S. durable goods orders that suggested inflation may be picking up. [US/] [USD/]

The rise in the return on savings helped financial stocks, which gained 1.05 percent. Bank of America rose 2.40 percent, lifting the S&P, while Goldman Sachs' 1.50 percent rise helped the Dow.

At 12:28 p.m. ET (1628 GMT), the Dow Jones Industrial Average was up 0.31 points, or flat, at 22,284.63 and the S&P 500 was up 2.54 points, or 0.10 percent, at 2,499.38.

The tech-heavy Nasdaq Composite was up 40.40 points, or 0.63 percent, at 6,420.57, helped by gains in Apple and Facebook shares.

The biggest S&P laggard was the consumer staples index. Procter & Gamble fell more than 2 percent and was the biggest drag on the S&P and the Dow.

Nike slipped about 3.4 percent after the company posted its slowest quarterly sales growth in nearly seven years and said it expected a further drop in revenue from North America.

Declining issues outnumbered advancers on the NYSE by 1,581 to 1,231. On the Nasdaq, 1,842 issues rose and 950 fell.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)