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article imageMonday main US stock indices reach record highs 26th time in 2017

By Ken Hanly     Nov 6, 2017 in Business
New York City - Among the reasons behind the new highs was optimism about merger activities and about Republicans introducing a tax plan that will improve profits.
On the merger front Broadcom offered $103 billion to purchase Qualcomm. Qualcom shares rose 1.15 percent on the news and Broadcom added 1.42 percent.
If the offer is accepted, it could be the largest deal ever in the technology sector. Qualcomm's third quarter earnings and revenues beat estimates as discussed in a recent Digital Journal article.
Paul Nolte of Kingsview Asset Management said:“The fact that the deal is on the table is huge. We have not seen much in the way of dealmaking this year. So this might jump-start some of the dealmaking ahead of the tax policy changes.”
There was also talk of Twenty-First Century Fox selling most of the company to Walt Disney Co. Disney shares rose 2.02 percent while Twenty-First Century Fox soared 9.95 percent.
News that if the Republican tax proposal goes through corporate taxes could decline from 35 percent to 20 percent may have buoyed investor optimism.
John Brady who is managing directory of R.J. O'brien and Associates in Chicago said:“I think that has to be the main driver.Even if it only goes to 25 percent or 27 percent, it’s still moving the right way.”
Higher prices in the energy sector helped the indices to reach record highs again as well. The many geopolitical concerns throughout the world failed to dampen optimism at the beginning of the week.
The energy sector of the S & P rose more than 2 percent over the day as a barrel of benchmark Brent crude rose over $64 dollars a barrel. Perhaps political turmoil in Saudi Arabia may have helped the oil price rise. A barrel of West Texas intermediate was also up 3 percent at $57.36 a barrel.
The 26 record highs so far in 2017 have already set a record for the number of simultaneous closing highs for the three major indices in one calendar year. The previous record was set in 1995.
The Dow Jones Industrial Average (DJIA) rose just marginally at less than 0.1 percent to 23,548. The S & P rose 0.1 percent to 2,591 while the Nasdaq composite did a bit better up 0.3 percent to close at 6,786
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