Wall Street posts small losses despite tax bill approval

• U.S. House approves the tax bill in final vote, sends it to President Trump.
• Crude oil recovery boosts energy shares.
• Profit-taking dominates trading action ahead of Christmas.

After starting the day in a quiet manner, major equity indexes failed to take advantage of the final approval to the biggest overhaul of the U.S. tax code in more than three decades on Wednesday and finished the day with small losses.

Wall Street's record-setting rally since early November showed that markets were already pricing the legalization of the tax bill and the relatively muted reaction seen in the last few days suggests that investors are looking to book profits ahead of Christmas.

“(The market) rallied hard last week on the assumption that the tax reform package would pass, which it did. The last looming issue is the potential of a government shutdown, but the Democrats appear to be retreating from the whole thing,” Stephen Massocca, senior vice president at Wedbush Securities in San Francisco, told Reuters.

Although most of the sub-indexes recorded modest losses on Wednesday, the S&P 500 Energy Sector (SPNY) gained 1.4% on the day after crude oil extended its recovery. Following today's EIA report, which showed a larger-than-expected drawdown in cure oil inventory in the U.S., the barrel of West Texas Intermediate rose above $58 for the first time since December 12, boosting energy shares. 

The Dow Jones Industrial Average dropped 25.77 points, or 0.1%, to 24,728.98, the S&P 500 fell 1.94 points, or 0.07%, to 2,679.53 and the Nasdaq Composite lost 1.93 points, or 0.03%, to 6,961.93.