US stocks dip as Donald Trump releases tax overhaul plan

NEW YORK (AFP) - Wall Street stocks finished slightly lower on Wednesday (April 26) following mixed earnings and after the White House unveiled details of its long-awaited tax reform plan.

Tax cuts have been Wall Street's top priority since the election of President Donald Trump. But analysts characterised the muted reaction to the announcement as a pullback after a strong rally the last two days.

"We got a big run up on the past few days as details of the tax plan had been leaked out and there was a bit of modest selling on the news," said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.

The Dow Jones Industrial Average lost 0.1 per cent to end the session at 20,975.09.

The broad-based S&P 500 also slipped 0.1 per cent to end at 2,387.45, while the tech-rich Nasdaq Composite Index finished at 6,025.23, dipping slightly from Tuesday's record when it closed above 6,000 for the first time.

Dow member Boeing dropped 1.0 percent after reporting a 7.3 per cent drop in revenues to US$21 billion, falling short of the US$21.3 billion expected by analysts. It was only the second time in 21 quarters the company disappointed expectations.

Procter & Gamble lost 2.5 per cent after it revealed declines in sales and profits, saying challenging geopolitical and economic conditions hit consumer demand.

US Steel plunged 26.7 per cent after reporting a loss of US$180 million in the first quarter and slashing its forecast for full-year earnings to US$260 million from the prior US$535 million.

Twitter surged 7.9 per cent as monthly active users grew 9 per cent from the same period a year ago to 328 million.

Other companies releasing earnings included United Technologies, which gained 1.2 per cent, Chipotle Mexican Grill, which gained 2 per cent, Edwards Lifesciences, which surged 10.5 per cent, and Seagate Technology, which slumped 16.8 per cent.