Nov 13 (Reuters) - Wall Street was little changed in late morning trading on Monday as GE's dismal outlook weighed on indexes and investors fretted over the future of the USA tax reform plan.
The market also was digesting news from struggling industrial conglomerate General Electric which announced its anticipated cost cutting plan that includes thousands of layoffs, sales of major assets and slashing dividends in half.
Shares of the industrial conglomerate fell 7.6 percent as investors anxious that plans for a years-long transformation did not show how the slimmed-down company would generate cash to justify its stock valuation.
With the third-quarter earnings season on its last leg, investors are closely tracking developments around the tax bill as well as economic data to make their bets.
"The process is moving forward".
"We're entering a period of uncertainty, until the tax bill is either passed or till we have more details", said Peter Cardillo, chief market economist at First Standard Financial in NY.
The S&P and the Dow ended the week lower for the first time in nine weeks on Friday after Senate Republicans unveiled a new tax plan that differed from the House of Representatives' version.
"The real difficulty will be pulling the two things together".
Hopes of lower taxes, one of President Donald Trump's main campaign promises, have helped drive the S&P 500 up 20 percent since the 2016 presidential election.
About 15 minutes into the trading day, the Dow Jones Industrial Average fell 0.2 percent to 23,373.37.
Toymaker Mattel jumped about 22 percent, becoming the biggest S&P percentage gainer, after a report that rival Hasbro made an approach to acquire the company.
The broader S&P 500 also fell 0.2 percent to 2,577.21, while the tech-heavy Nasdaq dropped almost 0.3 percent to 6,732.4.
Qualcomm gained almost 2 percent after the chipmaker rejected rival Broadcom's $103-billion takeover bid, saying the offer "dramatically" undervalued the company.
Declining issues outnumbered advancers on the NYSE by 1,806 to 747. On the Nasdaq, 1,498 issues fell and 1,358 advanced.