Optimism that Congress will reform the tax code boosted the markets to a sharply higher close with the Dow soaring 196 points to 21,899. Nasdaq leaped 84 points to 6,297.

On the upside

DSW (NYSE: DSW) reported higher second quarter earnings that beat analyst expectations.

Kirkland's (Nasdaq: KIRK) reported a smaller than expected loss for the second quarter.

RadNet (Nasdaq: RDNT) completed the amendment of its first lien credit facilities.

On the downside

Shares of e.l.f. Beauty (NYSE: ELF) fell after rival Coty (NYSE: COTY) warned of slowdown.

Second quarter earnings for Baozun (Nasdaq: BZUN) fell short of expectations.

Tarena International (Nasdaq: TEDU) disappointed with second quarter earnings that fell far short of analyst expectations prompting a downgrade.

In the broad market, advancing issues outpaced decliners by a margin of more than 5 to 2 on the NYSE and by nearly 5 to 2 on Nasdaq. The broader S&P 500 soared 24 points to 2,452. Bitcoin climbed $23 to $4,050.