Stocks fell earlier this morning after details emerged on House Republicans' plans for tax reform. However, by midday, the S&P 500 and Nasdaq were lower, while the Dow recovered to trade slightly higher.
The GOP proposes permanently cutting the corporate tax rate to 20% from 35% and slashes the number of tax brackets to three, while keeping a top rate of 39.6% for high earners.
Republicans also cut the threshold for taxable income on mortgages in half, sending homebuilder stocks into a tailspin. D.R. Horton Inc. (DHI) , Toll Brothers Inc. (TOL) , and Lennar Corp. (LEN) were sharply lower, while Home Depot Inc. (HD) weighed on the Dow.
Time Warner Inc. (TWX) plummeted on reports the DoJ might sue to block a purchase by AT&T Inc. (T) . A lawsuit could be filed on antitrust grounds. The deal had been expected to close by the end of the year.