Investment Commentary –November 28th, 2017
Market Indices as of Market Close November 28th, 2017
Dow 23,836 (20.62% YTD)
S&P 2,627 (17.34% YTD)
NASDAQ 6,912 (28.41% YTD)
Global DOW 3,000 (18.67% YTD)
Gold $1,297 (11.00%)
OIL $57.65 (1.18%)
US 10Y Treasury 2.328 (-11.77%)
Barclay Bond Aggregate (3.45% YTD)
Tax Plan Gains Steam After Trump ‘Lovefest’ With GOP Senators
The outlook for Republicans to deliver a U.S. tax overhaul by the end of the year brightened Tuesday after President Donald Trump addressed GOP Senate holdouts in a closed-door, lunchtime session.
The GOP meeting was “somewhat of a lovefest,” Trump said later Tuesday, as he prepared to meet with Majority Leader Mitch McConnell and House Speaker Paul Ryan at the White House. “They want to see it happen.”
The Senate Budget Committee voted to send the tax bill to the Senate floor for a vote as early as Thursday. The panel’s approval came on a party line vote of 12-11 after GOP Senators Ron Johnson of Wisconsin and Bob Corker of Tennessee put aside objections related to business taxes and deficit impacts.
Corker, who wants to include a trigger provision in the bill that would raise taxes in case of large revenue shortfalls, said he thinks tax writers have agreed to his demand.
After the vote, Trump told reporters there would be adjustments to the legislation. The bill is “going to have lots of adjustments before it ends, but the end result will be very, very massive,” he said.
News around the web:
One of this week’s most closely watched reports is likely to be Wednesday’s update of third-quarter GDP growth, which could show the economy is stronger than previously estimated. The government initially estimated the economy expanded at an annual rate of 3.0%. However, most economists expect the government will lift the figure to around 3.2%.
Wednesday’s release of the minutes from the U.S. Federal Reserve Board’s latest policy meeting showed that a majority of members favored raising short-term interest rates “in the near term,” assuming that economic data remains positive. The Fed’s next meeting is scheduled December 12–13.
On tap this week:
Wednesday: Third-quarter GDP, second estimate, U.S. Bureau of Economic Analysis. Pending home sales, National Association of Realtors
LEADERS & LAGGARDS
Leaders last week were Conglomerates, Industrial Goods and Healthcare.
This day in history: November 28, 1942 America Drops Coffee
On this day in 1942 the American people were asked to make a monumental sacrifice. Due to rationing the government asked Americans to forgo coffee to help the war effort.
The views presented are not intended to be relied on as a forecast, research or investment advice and are the opinions of the sources cited and are subject to change based on subsequent developments. They are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investments.