Will Senate Gut House’s Tax Cut?
Stocks on Wall Street fell yesterday in the face of pressure from losses in Microsoft (MSFT) and other tech stocks. Another driver behind the day’s losses was investors’ response to the Republican controlled Senate’s tax plan, which called for pushing off the cuts.
The S&P has soared 21% since Donald Trump took the Oval Office; the rally was sparked by promises that we’d see a corporate tax cut, along with other business-friendly steps.
Senate Republicans unveiled their tax reform which was recognizably different from the House of Representative version as far as corporations and individual tax rates go. The Senate proposal calls for pushing off the corporate tax cut to 20% by a year, while also offering firms tax deductions as opposed to an overarching corporate tax cut.
Earlier in yesterday’s trading, the lack of confidence about the future of the corporate tax cut sent the S&P 500 sliding as much as 1%. The decline accentuated the extent to which Wall Street was banking on the cut. At the same time, the sell-off was short-lived, stocks succeeding in recovering and recouping most of their losses.
Daily Summary: The Dow Jones fell 0.43%, the S&P 500 slipping 0.38%. The NASDAQ shed 0.58%.
The S&P 500 is traded at a forward earnings multiplier of 18, pricey given the 14.3 average over the last 10 years. The cut in the corporate tax rate was expected to significantly boost companies’ profitability, making their stocks less expensive.
A year has passed since the elections. The S&P 500 has risen 21% in the hopes of Trump’s agenda bearing fruit. With that said, despite Trump’s efforts to realize his goals, his administration is yet to tick off any significant achievement. If that doesn’t change, stocks are likely to halt and even see a major price correction, that is until things start moving in the right direction for Trump & Co.
One of the stocks that stood out in yesterday’s trading was Roku (ROKU), which skyrocketed 55% after the television streaming company substantially outstripped its forecasts.
The T.V. giant, DISH (DISH), jumped 3.22% after reporting that it had added new subscribers to its U.S. satellite TV service in Q3, while also succeeding in lowering the pace of client attrition.
About 7.4 billion shares changed hands on U.S. exchanges, above the 6.6 billion average over the last 20 trading days.
Friday’s Hot Stocks: NVDA, JWN, HTZ, CAR, RDFN, LBTYK
IPOs: ERYP, BAND, PPDF, WSPT
Have a great trading day!
|Tuesday||6:00||NFIB Small Business Optimism Index||105.0||Medium|
|Thursday||8:30||Jobless Claims||232 K||High|
|Thursday||10:00||Wholesale Trade||0.3 %||Medium|
|CAH||Cardinal Health, Inc.||AM||Monday|
|CVS||CVS Health Corporation||AM||Monday|
|MCHP||Microchip Technology Incorporated||PM||Monday|
|PCLN||The Priceline Group Inc.||PM||Monday|
|SWKS||Skyworks Solutions, Inc.||PM||Monday|
|EXPD||Expeditors International of Washington, Inc.||AM||Tuesday|
|RCL||Royal Caribbean Cruises Ltd.||AM||Tuesday|
|WLK||Westlake Chemical Corporation||AM||Tuesday|
|CLR||Continental Resources, Inc.||PM||Tuesday|
|MAR||Marriott International, Inc.||PM||Tuesday|
|TTWO||Take-Two Interactive Software, Inc.||PM||Tuesday|
|MGM||MGM Resorts International||AM||Wednesday|
|FOXA||Twenty-First Century Fox, Inc.||PM||Wednesday|
|MNST||Monster Beverage Corporation||PM||Wednesday|
|DISH||DISH Network Corporation||AM||Thursday|
|JCI||Johnson Controls International plc||AM||Thursday|
|NCLH||Norwegian Cruise Line Holdings Ltd.||AM||Thursday|
|PRGO||Perrigo Company plc||AM||Thursday|
|DIS||The Walt Disney Company||PM||Thursday|
|LBTYK||Liberty Global plc||PM||Thursday|
Today’s Picks – Day Trading!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy
No.1 – JUNO
|Company Name||Juno Therapeutics,|
|Sector||Healthcare | Biotechnology|