Uncertainty About Tax Reform May Weigh on Wall Street

By Investors Hub

The major U.S. index futures are pointing to a lower opening on Tuesday following the modestly higher close seen in the previous session.

Lingering uncertainty about the outlook for the Republican tax reform proposal may weigh on the markets as the House prepares to vote on their bill later this week.

The House bill has significant differences from the Senate version, raising concerns about whether GOP lawmakers will be able to work together to combine the legislation.

Nonetheless, traders may be reluctant to make significant moves ahead of the release of reports on consumer prices, retail sales, industrial production and housing starts in the coming days.

After seeing initial weakness, stocks moved modestly higher over the course of the trading session on Monday. The major averages climbed well off their early lows and managed to end the day in positive territory.

The Dow inched up 17.49 points or 0.1 percent to 23,439.70, the Nasdaq crept up 6.66 points or 0.1 percent to 6,757.60 and the S&P 500 edged up 2.54 points or 0.1 percent to 2,584.84.

The initial move to the downside partly reflected uncertainty about the outlook for tax reform, although selling pressure waned shortly after the start of trading.

Traders seemed reluctant to make significant moves ahead of the release of some key economic data later this week.

Reports on producer and consumer prices, retail sales, industrial production, and housing starts are likely to attract attention in the coming days.