Trillions of dollars in U.S. corporate profits held abroad are now more likely to come home, and stocks that investors believe will benefit rallied Wednesday.
The Trump administration and Republican Congress released a tax reform framework Wednesday, which included a reduction in taxes for companies with international earnings.
Big technology stocks such as Apple, Alphabet and Oracle, which will be among the biggest beneficiaries of this part of the plan, helped lead the market higher Wednesday.
"The framework treats foreign earnings that have accumulated overseas under the old system as repatriated. Accumulated foreign earnings held in illiquid assets will be subject to a lower tax rate than foreign earnings held in cash or cash equivalents," the GOP plan said.
"To prevent companies from shifting profits to tax havens, the framework includes rules to protect the U.S. tax base by taxing at a reduced rate and on a global basis the foreign profits of U.S. multinational corporations."
U.S. companies are holding $2.6 trillion of profits overseas to avoid paying the 35 percent corporate tax rate on earnings, according to Strategas Research Partners.
The firm also put together a list of 18 S&P 500 companies that will have the most earnings per share benefit from a repatriation tax reduction.
Fifteen out of the 18 company stocks on the list rallied Wednesday following the tax framework announcement.
Here are five companies in the Strategas "Repatriation Tax Change" basket that will benefit from a repatriation tax cut, most of which were higher in Wednesday's trading.