Wall Street cheers Senate's approval of tax bill; Dow up 200 pts

Wall Street indexes surged on Monday after the U.S. Senate passed its version of a tax code overhaul, bringing the Republicans closer to implementing corporate tax cuts.

Some of the biggest gainers included bank and industrial stocks. Bank of America and JPMorgan rose more than 3 percent, while Caterpillar and Boeing gained about 2 percent.

"This is a positive reaction to the Senate's passage," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

The Senate on Saturday approved their version of tax bill in a narrow 51-49 vote. The Senate and the House of Representatives will have to settle differences in their respective versions before it becomes a law.

"That (reconciliation) can be a bit of a challenge because there are differences and the number of approvals to pass it is a little bit higher than it was for the individual two sides of the Congress," said Frederick.

The S&P 500 has risen about 18 percent this year on strong corporate earnings and solid economic growth and also on hopes that Trump's agenda of corporate tax cuts and looser regulations could come through.
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