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REFILE-US STOCKS-Wall St edges up at open ahead of Trump's budget plan
May 23, 2017 / 1:52 PM / in 5 months

REFILE-US STOCKS-Wall St edges up at open ahead of Trump's budget plan

(Adds dropped word “of” in headline)

* Autozone’s weak report weighs on auto part retailers

* Take-Two hits record high on better-than-feared forecast

* Indexes up: Dow 0.16 pct, S&P 0.11 pct, Nasdaq 0.11 pct

By Tanya Agrawal

May 23 (Reuters) - U.S. stocks were slightly higher on Tuesday ahead of U.S. President Donald Trump’s first full budget plan that is aimed at slashing government spending and trimming the deficit.

Trump is set to propose a raft of politically sensitive cuts, including to healthcare and food assistance programs for the poor, with the aim of chopping government spending by $3.6 trillion and balancing the budget over the next decade.

Congress holds the federal purse strings and often ignores presidential budgets, which are proposals and may not take effect in its current form.

“In the U.S. all eyes are on Trump’s budget proposal. The budget will not pass in its current state, but people will keep an eye on any sort of indication of corporate tax reform as well as infrastructure spending,” said Nadia Lovell, US Equity Strategist at J.P. Morgan Private Bank in New York.

At 9:37 a.m. ET (1337 GMT) the Dow Jones Industrial Average was up 33.62 points, or 0.16 percent, at 20,928.45, the S&P 500 was up 2.72 points, or 0.11 percent, at 2,396.74 and the Nasdaq Composite was up 6.75 points, or 0.11 percent, at 6,140.37.

Nine of the 11 major S&P 500 sectors were higher, with the health index’s and technology sector’s 0.23 percent rise leading the advancers.

U.S. futures slipped slightly on Monday evening, before recovering, on news of the suicide attack that killed at least 22 people and wounded 59 at a pop concert in the English city of Manchester.

Among stocks, shares of Toll Brothers rose 2.7 percent to $39.01 after the luxury homebuilder reported a 40 percent rise in quarterly profit.

Autozone fell 8.2 percent to $608.57 after the company’s quarterly results came in below expectations. Shares of other auto part retailers were also hit. Advance Auto Parts , O‘Reilly Automotive and Genuine Parts were down between 3 percent and 4.5 percent.

Shares of Take-Two reversed course from premarket to rise as much as 11 percent to a record high of $76.70 as the videogame maker’s full-year forecast was not as bad as feared.

Advancing issues outnumbered decliners on the NYSE by 1,701 to 819. On the Nasdaq, 1,150 issues rose and 1,066 fell.

The S&P 500 index showed 28 new 52-week highs and four new lows, while the Nasdaq recorded 46 new highs and 18 new lows. (Reporting by Tanya Agrawal; Editing by Savio D‘Souza)

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