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.

IndexLastDaily change
DJX23,462(0.43%)Down
SPX2,585(0.38%)Down
Nasdaq6,750(0.58%)Down

Friday’s Hot Stocks: NVDA, JWN, HTZ, CAR, RDFN, LBTYK

IPOs: ERYP, BAND, PPDF, WSPT

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Tuesday6:00NFIB Small Business Optimism Index105.0Medium
Tuesday10:00JOLTS6.082 MMedium
Wednesday10:30Oil InventoriesLow
Thursday8:30Jobless Claims232 KHigh
Thursday10:00Wholesale Trade0.3 %Medium
Friday10:00Consumer Sentiment100.0 High

 

Earning Calendar

 

SymbolCompanyAM/PMDay
CAHCardinal Health, Inc.AMMonday
CVSCVS Health CorporationAMMonday
MYLMylan N.V.AMMonday
MCHPMicrochip Technology IncorporatedPMMonday
PCLNThe Priceline Group Inc.PMMonday
SWKSSkyworks Solutions, Inc.PMMonday
COHCoach, Inc.AMTuesday
EXPDExpeditors International of Washington, Inc.AMTuesday
HCNWelltower Inc.AMTuesday
RCLRoyal Caribbean Cruises Ltd.AMTuesday
WBWeibo CorporationAMTuesday
WLKWestlake Chemical CorporationAMTuesday
AGUAgrium Inc.PMTuesday
CLRContinental Resources, Inc.PMTuesday
DVADaVita Inc.PMTuesday
MARMarriott International, Inc.PMTuesday
SNAPSnap Inc.PMTuesday
TTWOTake-Two Interactive Software, Inc.PMTuesday
HUMHumana Inc.AMWednesday
MGMMGM Resorts InternationalAMWednesday
FOXATwenty-First Century Fox, Inc.PMWednesday
HOLXHologic, Inc.PMWednesday
MNSTMonster Beverage CorporationPMWednesday
SQSquare, Inc.PMWednesday
COTYCoty Inc.AMThursday
DISHDISH Network CorporationAMThursday
JCIJohnson Controls International plcAMThursday
NCLHNorwegian Cruise Line Holdings Ltd.AMThursday
PRGOPerrigo Company plcAMThursday
DISThe Walt Disney CompanyPMThursday
LBTYKLiberty Global plcPMThursday
NVDANVIDIA CorporationPMThursday

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
CHRW81.35ROKUJCI
NTNX29SEDGYUM
PSX95M 
ROKU29.80FOX 
BAX65.70SBGI 
 MAC 
 SIG 

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

11.9.2017VNTVLongClose14.9.2017+1.35%
212.9.2017CPBShortClose15.9.2017-1.10%
318.9.2017INSMLongClose22.9.2017+1.92%
425.9.2017GPSLongClose2.10.2017+1.69%
527.9.2017SQMLongClose29.9.2017+1.69%
62.10.2017ATILongClose6.10.2017+3.12%
72.10.2017TROXLongClose18.10.2017+13.93%
83.10.2017ABTLongClose11.10.2017+1.60%
99.10.2017ZGNXLongClose12.10.2017+3.26%
1016.10.2017INSMLongClose19.10.2017-2.82%
1124.10.2017CVSShortClose1.11.2017+4.77 %
1230.10.2017SKXLongClose31.10.2017-1.42%
1331.10.2017STXLongClose2.11.2017-0.15%
143.11.2017AKAMLongClose8.11.2017+1.37%
15      
16 
17
18      

 

Today’s Picks – Swing “New-York Strategy

No.1 –    JUNO

Company NameJuno Therapeutics, 
Entry Point55
Stop Area52.95
1st Target55.90
Swing Target61.59
Avg. Volume2.95M
SectorHealthcare | Biotechnology
Earning Date
Risk RateHigh
Risk\Reward Ratio3.21:1