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.
Thursday’s Hot Stocks: CAG, ACN, AAAP
IPOs: DCPH, NITE
Have a great trading day!
|Tuesday||9:00||S&P Case-Shiller||0.4 %||Medium|
|Tuesday||10:00||New Home Sales||583 K
|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|
|Thursday||8:30||Jobless Claims||270 K||Medium|
|Friday||8:30||Personal Income and Outlays||0.3 %||Medium|
|THO||Thor Industries, Inc.||PM||Monday|
|DRI||Darden Restaurants, Inc.||AM||Tuesday|
|MU||Micron Technology, Inc.||PM||Tuesday|
|WOR||Worthington Industries, Inc.||AM||Wednesday|
|CAG||Conagra Brands, Inc.||AM||Thursday|
|MKC||McCormick & Company, Incorporated||AM||Thursday|
|CMC||Commercial Metals Company||AM||Thursday|
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