After an initial move to the downside, stocks have regained some ground over the course of morning trading on Thursday. The major averages have climbed off their lows of the session and back toward the unchanged line.
Currently, the major averages are turning in a mixed performance. While the Nasdaq is down 4.99 points or 0.1 percent at 6,448.27, the Dow is up 11.91 points or 0.1 percent at 22,352.62 and the S&P 500 is up 0.73 points or less than a tenth of a percent at 2,507.78.
The initial weakness on Wall Street came as traders continued to digest the tax reform plan unveiled by Republican lawmaker and President Donald Trump.
The GOP plan includes a reduction in the corporate tax rate to 20 percent from 35 percent, a consolidation in the personal income tax brackets to three from seven, and a sharp increase in the standard deduction.
In remarks touting the plan in Indiana on Wednesday, Trump suggested the tax reform plan represents a historic opportunity.
“I’ve been waiting for this for a long time,” Trump said. “We’re going to cut taxes for the middle class, make the tax code simpler and more fair for everyday Americans.”
He added, “And we are going to bring back the jobs and wealth that have left our country and most people thought left our country for good.”
While Republicans did not provide details about how the cost of the tax cuts would be offset, Trump’s top economic advisor Gary Cohn predicted the plan would be paid for by economic growth.
“We think we can drive a lot of business back to America, we can drive jobs back to America, we can make ourselves very competitive,” Cohn told CNBC. “We think we can pay for the entire tax cut through growth over the cycle.”
On the U.S. economic front, the Commerce Department released a report showing economic activity increased by slightly more than previously estimated in the second quarter.
The report said gross domestic product jumped by 3.1 percent in the second quarter compared to the previously estimated 3.0 percent…