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US STOCKS-Deficit doubts on tax bill cool Wall Street rally
December 1, 2017 / 1:52 PM / 13 days ago

US STOCKS-Deficit doubts on tax bill cool Wall Street rally

* Lawmakers could move to final vote late in the day

* VMWare rises after strong results

* Blue Apron names new CEO, shares rise

* Futures down: Dow 5 pts, S&P 2.75 pts, Nasdaq 24 pts (Adds comment, details on companies, updates prices)

By Sruthi Shankar and Rama Venkat Raman

Dec 1 (Reuters) - U.S. stock futures pointed to a reversal of some of this week’s gains for Wall Street on Friday, as a delay in voting on a Republican tax overhaul kept investors on edge about its passage.

The tech-heavy Nasdaq futures were down about 0.4 percent, while the S&P 500 and Dow futures pointed to a slightly lower opening for both.

The U.S. Senate debated the tax bill late into Thursday and adjourned as some of the fiscal conservatives were unsettled about the effect on the deficit from the bill. The lawmakers could move to a final vote late in the day after a procedural vote starting at 11:00 a.m. ET (1600 GMT)

A surprise endorsement by Republican Senator John McCain added momentum to the bill on Thursday, pushing the S&P 500 to close at a record and the Dow Jones index to break above the 24,000 mark for the first time.

“Investors are taking a slightly cautious attitude after yesterday’s surge because we are hitting a speed bump with the bill,” said Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey.

New York Fed President William Dudley said in an interview with the Wall Street Journal on Friday that it was probably not the best time to apply fiscal stimulus when the economy was already close to full employment.

Among early movers, VMWare rose 2.4 percent after the virtualization software maker reported upbeat results as more customers licensed its products to help ease their move to cloud.

Ulta Beauty fell more than 5 percent after the cosmetic retailer’s profit and sales forecast fell below estimates, prompting at least three brokers to cut price targets on the stock.

Blue Apron rose 8 percent after the meal-kit delivery company said its co-founder and chief executive Matt Salzberg would give up the role and be replaced by its chief financial officer.

Oil prices rose about 1 percent, extending gains from Thursday after OPEC and other major producers agreed to extend output curbs until the end of 2018.

At 8:30 a.m. ET, Dow e-minis were down 5 points, or 0.02 percent, with 57,949 contracts changing hands.

S&P 500 e-minis were down 2.75 points, or 0.1 percent, with 341,912 contracts traded.

Nasdaq 100 e-minis were down 24 points, or 0.38 percent, on volume of 65,134 contracts. (Reporting by Sruthi Shankar and Rama Venkat Raman in Bengaluru; Editing by Bernard Orr)

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