Tech, small-cap stocks pull back from recent highs

Associated Press

NEW YORK

U.S. stocks declined Tuesday as big technology companies and smaller firms gave up some of their recent gains. Stocks hit record highs over the previous two days as the Republican-backed tax bill made its way through Congress.

Smaller companies in particular have surged because investors feel they will be major beneficiaries of lower corporate tax rates. High-dividend stocks dropped as bond yields rose.

Investors like the proposed tax cut because it would boost corporate profits and likely raise stock prices along with it. The bill would initially cut taxes for most Americans but by 2027 would increase tax bills for most.

While stocks weren’t doing much Tuesday, bond prices fell. The yield on the 10-year Treasury note rose to its highest price in more than a month, to 2.45 percent from 2.39 percent late Monday.

Investors also traded on corporate news. Offshore drilling platform maker McDermott International said it will acquire engineering, procurement and construction services company Chicago Bridge & Iron.

The companies valued the deal at $6 billion. McDermott fell 90 cents, or 11.9 percent, to $6.69 and CB&I lost $1.91, or 10.7 percent, to $16.01.

Medical device maker Zimmer Biomet climbed after it named Bryan Hanson to be its new CEO. Hanson most recently led at Medtronic’s minimally invasive therapies business. Former CEO David Dvorak left the company in July. Zimmer gained $6.95, or 6.1 percent, to $121.38.

Hospital operator Tenet Healthcare said it will cut another $100 million in costs and will look to sell its Conifer business, which provides revenue management services. The company also said it will continue shaking up its board. Its stock gained 29 cents, or 2 percent, to $15.03.

Nursing and rehabilitation center company Kindred Healthcare said it will be bought by health insurer Humana and two private equity firms for $9 a share. That values Kindred at $782 million, and the company said the deal is worth $4.1 billion including debt.

Apple fell $1.88, or 1.1 percent, to $174.54 after it closed at a new high on Monday. Visa lost $1.41, or 1.2 percent, to $112.14.