The major domestic equity indexes ended the trading day on Monday in positive territory as a sharp decline in General Electric was more than offset by gains in high dividend-paying sectors including consumer staples and utilities.
General Electric slashed its dividend by 50 percent and cut its profit forecast while unveiling a plan that narrowed its focus on aviation, power and healthcare. The company’s shares fell 7.2 percent to $19.02 after touching a more than five-year low of $18.75.
The utilities and consumer staples sectors were among those with the highest dividend yield on the S&P 500. They were also the largest percentage winning sectors on Monday.
Investors are closely tracking developments around the tax bill after Senate Republicans last week unveiled a new plan that differed from the House of Representatives’ version.
Some relief for investors did come from the regulatory side, and shares of regional banks rose after the Wall Street Journal reported a bipartisan group of Senate lawmakers reached a tentative agreement to ease some regulations on the sector.
The KBW Regional Banking Index was lower at the open but turned positive mid-session and ended up 1.3 percent after steadily climbing in afternoon trading.
Mattel rose 20.7 percent to $17.64 after a report that rival Hasbro made an approach to acquire the company. Hasbro rose 5.9 percent to $96.84.
Qualcomm gained 3.0 percent to $66.49 after the chipmaker rejected rival Broadcom’s $103-billion takeover bid, saying the offer “dramatically” undervalued the company.
Tyson Foods saw its share price gain 2.0 percent to $75.59 after the company said low prices for livestock feed will help increase profitability again next year. Shares hit their highest level since September 2016.
Roku continued to rally, up 28.5 percent on Monday to $42.71, more than doubling since the company reported earnings last week. The stock debuted at $15.78 on September 28, after having priced its initial public offering at $14.
Approximately 6.18 billion shares changed hands on the major domestic equity exchanges, a number that fell short of the 6.67 billion share daily average over the last 20 trading sessions.