While you were sleeping: UPDATED Trump's tax plans fail to lift stocks

Wall Street gave up some of its earlier gains after the US administration's unveiling of tax cut plans fell short on details.

Investors also questioned that the proposal was feasible.

"The plan that has been announced today is very aggressive, and unlikely to pass as is," Alan Gayle, a senior strategist at RidgeWorth Investments in Atlanta, told Bloomberg.

"I haven't heard of anyone on the street that has been adjusting earnings estimates based on the likelihood we'll get tax reform. This remains an unknown and it's not being factored into the market yet."

At the close of trading in New York, the Dow Jones Industrial Average fell 21.03 points, or 0.1%, to 20,975.09. The Nasdaq Composite Index was unchanged at 6025.23 and the Standard & Poor's 500 Index fell 0.05% to 2387.45.

Earlier in the day, the Nasdaq touched a record high 6040.90 before falling back later in the session. 

In the Dow, rises in Verizon and United Technologies failed to outweigh slides in Procter & Gamble and Boeing.

PepsiCo margins tighten
United Technologies posted quarterly results that surpassed expectations, while Procter & Gamble and Boeing each failed to meet the mark with their latest earnings.

PepsiCo shares fell amid concern about the company's margins even as it posted earnings that beat analysts' expectations.

"We achieved solid revenue growth in the first quarter underpinned by global volume growth and positive net price realisation, despite challenging food and beverage industry trading conditions in North America and continued volatility in a number of developing and emerging markets," PepsiCo CEO Indra Nooyi said in a statement.

Even so, gross margin contracted 45 basis points in the first quarter, the company said.

"The quality of the quarter was disappointing," Andrea Teixeira, an analyst at JPMorgan Chase & Co, said in a research note, Bloomberg reported.

"Organic revenue, gross margin and operating margin all came in weaker than we anticipated."

Leave Nafta report
Meanwhile, Canadian and Mexican stocks slid after Politico reported the Trump administration is considering an executive order on withdrawing the US from Nafta, the free trade ageement linking all three countries. The Canadian dollar and Mexican peso also declined.

A draft order has been submitted for the final stages of review and could be unveiled late this week or early next week, Politico reported, citing two White House officials.

The effort, which still could change in the coming days as more officials weigh in, would indicate the administration's intent to withdraw from the sweeping pact by triggering the timeline set forth in the deal, according to Politico.

"It is a clear indication that they [in the White House] are wanting changes but we will have to see what emerges," Paul Ferley, assistant chief economist at Royal Bank of Canada, told Reuters.

In Europe, the Stoxx 600 Index ended the day with a 0.5% increase. Germany's DAX Index advanced 0.1%, while the UK's FTSE 100 Index rose 0.2%, as did France's CAC40 Index.

(BusinessDesk)