Trump Tax Revolution!

Stocks on Wall Street ended up Wednesday, financial stocks gaining momentum as expectations grew for a December rate hike and the hope that Trump would progress substantially with his tax reform plan. Financial stocks rallied 1.3%. When rates rise, banks move too! The point when rates rise is the very same point when banks start making money. Goldman Sachs (GS) soared 2.1%, giving the Dow Jones its biggest push.

Yesterday Trump presented the biggest tax reform plan in three decades, but didn’t offer details as to how he’d finance the plan without dramatically increasing the budget deficit. In the event the bill passes through both houses of Congress, it would be Trump’s first significant legislative victory since he moved into the White House in January.

Small-cap stocks (IWM) rallied 1.92%, recording their best trading day since March. Small-caps are expected to benefit more than any other grouping from a tax cut. According to the new tax plan, corporate taxes will fall from 35% to 20%. Personal income tax will be streamlined to 3 different brackets, the highest being 35%; the highest tax rate is now almost 40%. Trump’s goal in lowering taxes is to accelerate inflation. Trump, in his speech, noted that the tax reform would enable American businesses to benefit from the lowest tax rates in about 100 years.

Daily Summary: The Dow Jones rose 0.25%, the S&P 500 advancing 0.41%. The NASDAQ ended nicely up by 1.15%.

One of the stocks standing out in trading was Nike (NKE) which fell 1.92%, limiting the gains on the Dow and S&P 500 after the sports shoe and apparel company reported its lowest sales growth in almost 7 years. Likewise, investors were disappointed to learn that the company projects further weakness from North American revenues.

About 6.55 billion shares traded hands on U.S. exchanges, compared to the 5.91 billion average over the last 20 trading days.

Thursday: The third reading on Q2 U.S. growth will be released today before trading opens at 8:30 N.Y. time – and is expected to show the U.S. economy growing at a 3% clip, significantly higher than the mired growth rate this quarter which suffered due to Hurricanes Irma and Harvey.

Other figures that will be in investors’ focus today on Wall Street include weekly unemployment claims, which also were affected by hurricanes in recent weeks, Florida and Texas residents unable to work. The projection now is 270 thousand new unemployment claims.

Fed Vice-chair, Stanley Fischer, will be speaking at a conference at the Bank of England at 10:00.

Earnings reports are expected from: CAG, ACN.

Index Last Daily change
DJX 22,341 0.25% Up
SPX 2,507 0.41% Up
Nasdaq 6,453 1.15% Up

Thursday’s Hot Stocks: CAG, ACN, AAAP

IPOs: DCPH, NITE

Have a great trading day!

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Tuesday 9:00 S&P Case-Shiller  0.4 % Medium
Tuesday 10:00 New Home Sales 583 K

 

Medium
Tuesday 10:00 Consumer Confidence 120.2 High
Tuesday 11:50 Janet Yellen Speaks “Prospects for Growth: Reassessing the Fundamentals” Medium
Wednesday 8:30 Durable Goods Orders 1.5 % Low
Wednesday 10:00 Pending Home Sales Index -0.1 % Medium
Wednesday 10:30 Oil Inventories Low
Thursday 8:30 GDP 3.1 % Medium
Thursday 8:30 Jobless Claims 270 K Medium
Friday 8:30 Personal Income and Outlays 0.3 % Medium
Friday 9:45 Chicago PMI 58.6 Medium
Friday 10:00 Consumer Sentiment 95.3 High

 

 

Earning Calendar

 

Symbol Company AM/PM Day
CCL Carnival Corporation AM Monday
THO Thor Industries, Inc. PM Monday
DRI Darden Restaurants, Inc. AM Tuesday
MU Micron Technology, Inc. PM Tuesday
NKE NIKE, Inc. PM Tuesday
WOR Worthington Industries, Inc. AM Wednesday
ALR Alere Inc. AM Wednesday
CAG Conagra Brands, Inc. AM Thursday
MKC McCormick & Company, Incorporated AM Thursday
CMC Commercial Metals Company AM Thursday
AKRX Akorn, Inc. AM Thursday
ACN Accenture plc AM Thursday
 

 Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
HTZ 24.22 SEDG ABT
TSCO 63.38 UCTT BMS
MTCH 24.40 SRPT SCG
SRPT 48 AMAT DLPH
  WSM  
  SQM  
  CREE  
  KLAC  
  BBY  

 

 New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 2.8.2017 AKAM Short Close 3.8.2017 -1.12%
2 3.8.2017 NKE Long Close 8.8.2017 +0.02%
3 4.8.2017 SBUX Short Close 16.8.2017 +2.40%
4 8.8.2017 NTAP Long Close 9.8.2017 -1.17%
5 22.8.2017 ATHM Long Close 23.8.2017 +0.16%
6 23.8.2017 AAP Short Close 26.8.2017 +0.98%
7 28.8.2017 CREE Short Close 30.8.2017 -0.86%
8 30.8.2017 TRIP Long Close 11.9.2017 +3.88%
9 1.9.2017 VNTV Long Close 14.9.2017 +1.35%
10 12.9.2017 CPB Short Close 15.9.2017 -1.10%
11 18.9.2017 INSM Long Close 22.9.2017 +1.92%
12 25.9.2017 GPS Long Open   +2.86%
13 27.9.2017 SQM Long Open +1.85%
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