Investing.com – US stocks fell on Thursday as reports that tax reform could be losing crucial Senate votes weighed on financials, pressuring the broader indexes lower.
The Dow Jones Industrial Average closed lower at 24,510. The S&P 500 closed 0.41% lower, while the Nasdaq Composite closed at 6856.53, down 0.28%.
Republican Senator Mike Lee was said to be undecided on the tax bill in its current form, CNN reported, citing a statement from spokesman Conn Carroll. Sen. Bob Corker, who voted no on the Senate bill said he would reconsider the final version of the bill.
With the Republican Senate majority recently cut to 51-49 following a senate election defeat of Roy Moore earlier this week, investors optimism on tax reform eased slightly amid reports that Sen. Marco Rubio could vote against the bill.
Rubio, said he won't approve the GOP tax plan unless it raises the refundable portion of the child tax credit currently at $1,100.
Republicans can afford to only lose two votes to pass it through the Senate. In the event of a tie, Vice President Pence would have the deciding vote.
Uncertainty on the tax reform front, weighed on banks – one the main beneficiaries of tax reform – offsetting earlier optimism following the release of upbeat retail sales data suggesting consumer spending remained robust to support ongoing US economic growth.
The Commerce Department said on Thursday that retail sales rose 0.8% last month. that was above economists’ forecast of a 0.3%.
In corporate earnings news, Costco (NASDAQ:COST) is expected to reveal earnings after US markets close today amid bullish sentiment in the retail sector following solid earnings from Walmart (NYSE:WMT) in November.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: Walt Disney Company (NYSE:DIS) up 2.8%, Boeing Co (NYSE:BA) up 0.7% and Nike Inc (NYSE:NKE) up 0.4%
Caterpillar Inc (NYSE:CAT) down 1.5%, UnitedHealth Group Incorporated (NYSE:UNH) down 1.4% and Verizon Communications Inc (NYSE:VZ) down 1%, were among the worst Dow performers of the session.