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US STOCKS-Wall St set to open flat with tax plan in focus
April 26, 2017 / 12:57 PM / in 6 months

US STOCKS-Wall St set to open flat with tax plan in focus

* Tax reform plan expected later in the day

* Boeing down as revenue slips

* Steel stocks hit by disappointing US Steel results

* Futures: Dow down 7 pts, S&P down 1.5 pts, Nasdaq up 1.25 pts (Adds details, comments, updates prices)

By Yashaswini Swamynathan

April 26 (Reuters) - U.S. stocks were on track to open little changed on Wednesday, following two days of strong gains, as investors remained on the sidelines ahead of a highly anticipated tax plan.

Trump is proposing to slash the corporate tax rate to 15 percent and offer multinational businesses a steep tax break on overseas profits brought into the United States, officials said late on Tuesday.

U.S. Treasury Secretary Steven Mnuchin told CNBC that there was fundamental agreement with Congress on the goals of tax reforms and that the administration would release details of the plan later on Wednesday.

“We have a pretty good idea that he (Trump) is targeting lower corporate taxes, lower individual taxes and a simplification of the process, but all that is in an ideal world,” said Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey.

“The market will not interpret the plan negatively, but there are obstacles in that course, just like with anything that Trump says and does.”

Investors are also assessing a raft of quarterly earnings reports. Dow component Boeing’s shares slipped 1.4 percent in premarket trading after the planemaker reported a decline in revenue.

Dow e-minis were down 7 points, or 0.03 percent, at 8:28 a.m. ET (1228 GMT) with 27,744 contracts changing hands.

S&P 500 e-minis were down 1.5 points, or 0.06 percent, with 117,019 contracts traded.

Nasdaq 100 e-minis were up 1.25 points, or 0.02 percent, on volume of 19,628 contracts.

Wall Street marked its best two-day gain for the year on Tuesday after a favorable French election outcome and strong earnings boosted investor optimism and sparked demand for risk assets.

The Nasdaq Composite index breached the 6,000 mark for the first time on Tuesday, while other indexes came within spitting distance of their peaks.

“In this process of searching for new highs, I expect profit taking and pauses as investors question where the next push will come from” Bakhos said.

Shares of Wynn Resorts jumped 5.7 percent to $125 after the casino operator reported better-than-expected revenue from its new casino in China’s gambling territory.

United States Steel tumbled more than 17 percent to $25.87 after the company’s profit and revenue missed analysts’ expectations. AK Steel were off nearly 2 percent.

Twitter jumped 11 percent after reporting its strongest growth in monthly active users in more than a year and a quarterly profit that blew past expectations. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D‘Silva)

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