* Trump has promised major tax announcement in coming weeks
* Apple closes in on record high as Goldman ups price target
* Verizon's unlimited data plans drags on telecom stocks
* Indexes up: Dow 0.78 pct, S&P 0.59 pct, Nasdaq 0.60 pct
(Updates to afternoon)
By Noel Randewich
Feb 13 U.S. equity indexes hit record intraday
highs on Monday, with the benchmark S&P 500's market
capitalization topping $20 trillion as investors bet tax cuts
promised by President Donald Trump would boost the economy.
Trump vowed last Thursday to make a major tax announcement
over the next few weeks, adding fuel to a rally that had stalled
amid worries about the potential impact of his protectionist
trade stance and a lack of clarity about other policy reforms.
The S&P has surged 9 percent since Trump's Nov. 8 election,
boosted by expectations he would lower corporate taxes, ease
regulations governing banks and increase infrastructure
"Investors are willing to say the prospects for growth are
higher now than they were, and they're not just saying it,
they're committing capital," said Jamie Cox, managing partner of
Harris Financial Group in Richmond Virginia.
The S&P 500 financials index jumped 1.4 percent,
with banks leading the way. The industrial sector
gained 1.1 percent. The two sectors are seen benefiting heavily
from Trump's policies.
Strong economic data in recent weeks has been supported by
upbeat corporate results. S&P 500 companies are on track for
their strongest profit growth in nine quarters, according to
Thomson Reuters I/B/E/S.
"What is underlying this whole Trump rhetoric is that
fundamentals in the world, including the U.S., are getting
better," said Brent Schutte, chief investment strategist at
Northwestern Mutual Wealth Management.
At 2:05 p.m. ET, the Dow Jones Industrial Average was
up 0.78 percent at 20,427.17 points, while the S&P 500
gained 0.59 percent to 2,329.78.
The Nasdaq Composite added 0.6 percent to 5,768.30.
Apple, a component of all three indexes, rose 1.1
percent and was on track to close at a record high for the first
time since 2015. Goldman Sachs increased its target price for
Apple's shares on expectations of strong iPhone sales this year.
Verizon Communications fell 0.8 percent after the telecom
carrier said it was bringing back an unlimited data plan,
sparking fears of a price war. AT&T fell 1.7 percent,
T-Mobile sank 2.8 percent and Sprint fell 1.2
Advancing issues outnumbered declining ones on the NYSE by a
1.70-to-1 ratio; on Nasdaq, a 1.47-to-1 ratio favored advancers.
The S&P 500 posted 71 new 52-week highs and no new lows; the
Nasdaq Composite recorded 182 new highs and 17 new lows.
(Additional reporting by Yashaswini Swamynathan in Bengaluru;
Editing by Bernadette Baum)