Dividend paying stocks helped Wall Street bounce back from a morning deficit on Monday. Fred Katayama reports.
Wall Street bounced back from morning losses on Monday, overcoming a sharp drop in GE shares and investor concern over the U.S. tax reform plan. High dividend paying sectors like consumer staples and utilities led the rally. Direxion managing director Sylvia Jablonski. SOUNDBITE: SYLVIA JABLONSKI, MANAGING DIRECTOR, DIREXION, (ENGLISH) SAYING: "There's some big deals in the semiconductor space that investors are looking at. Mega tech has continued to rally. Earnings per share estimates from all of those companies have outperformed. Investors are thinking about tax policy, what the final bill will look like. But ultimately, the S&P has been on a trend this year, so I think investors are you know, cautiously optimistic but monitoring it very closely." General Electric shares weighing on the Dow and other industrial shares. The sprawling conglomerate said it'll focus on three businesses - aviation, power and healthcare, and it cut its dividend and profit outlook in half. Mattel shares sprung higher. A source says rival Hasbro has made an approach to acquire the toy maker behind the brands Barbie and Hot Wheels. Investors scooped up Qualcomm shares after the chipmaker turned down Broadcom's $103 billion unsolicited takeover bid. Shares slumped in Europe, pulled down by poor earnings updates.