Market Says, “The Trump Administration to Deliver Tax Reform”
$DIA, $SPY, $QQQ, $VXX
Markets are in full risk-on mode this week.
DJIA gained 232.23 pts or 1.12% to close at 20996.12 Tuesday.
S&P 500 also rose 14.46 pts or 0.61% to close at 2388.61.
Both indexes took out Key resistance at 20887.5 and 2378.36 respectively and should be heading for new record highs.
Meanwhile, NAS Comp maintains its lead and closed at new record high at 6025.49, + 0.7%.
Treasury yields also jumped with 10 year yield closing up 0.054 at 2.327. That compares to last week’s low at 2.177 and Key resistance at 2.391. A break above 2.391 will pave the way for a test on 2.621 Key near term resistance.
US Dollar stays weak Vs European majors though. But The US Dollar (.DXY) Index is losing some Southside momentum below support at 98.85.
Markets continue to re-price in June Fed hike.
Fed fund futures now suggest over 75% chance of a 25 bpts hike by Fed at June meeting. And, it was below 50% last week. But the expectation really depends on what US President Donald Trump would deliver regarding his tax reforms Wednesday.
There is talk that President Trump would push to lower public companies’ income tax rate to 15%, down from 35%.
Besides, there would be cut on top tax rate on “pass through” businesses, from 39.6% to 15%. And there would also be tax rate cut on offshore earnings which are repatriated, down from 35% to 10%.
Meanwhile, there will not be a so called “border-adjustment” tax on imports. US Treasury Secretary Steven Mnuchin and National Economic Director Gary Cohn are scheduled to have a joint press conference around 1:30p EDT Wednesday, from the White House Briefing Room.
Latest posts by Paul Ebeling (see all)
- Want to be Successful? Get Involved! - May 23, 2018
- F1: Ferrari (NYSE:RACE) Back on the Streets of Monaco - May 23, 2018
- Ferrari’s (NYSE:RACE) Latest 1-Off Supercar, the SP38 - May 23, 2018