Abstract: A tool for cutting a wire to length and then wrapping it around a terminal post includes an air motor driving through a planetary gear reduction to rotate a spindle, and a wire contacting bit rotated by the spindle. In order to develop sufficient torque to sever the wire at the bit, there is provided a member constrained to move helically with respect to the spindle housing, and the member is actuated by an air operated piston. A clutch between said member and the spindle disengages upon predetermined axial travel of said member to permit free turning of the spindle by the air motor to accomplish the wire wrapping operation. A spring returns said member to its initial position after the supply of air to the air motor and piston is cut off and the clutch automatically aligns the spindle and bit into initial position for insertion of another wire. One end of the spindle is supported within the bore of the inner race of a anti-friction bearing assembly in the housing.