The dollar lost ground on Friday after US Senate Republicans announced tax reforms late on Thursday that failed to match the business and corporate rates promised by their colleagues in the House of Representatives. Most importantly, the 20% corporate rate will be delayed by a year and small businesses will receive a deduction rather than a special rate.
The major US indexes and the dollar fell as a result, with the US currency down 0.13% on a trade-weighted basis. While the dollar remains down more than 8% on the year, it has rallied nearly 1.5% since President Trump announced details of his sweeping tax proposals in late September. In the same period, the benchmark S&P 500 index has rallied 3.1%. The index is up about 20% since Trump was elected in November 2016.
Stocks remain close to record levels, however, as third-quarter earnings season slows down. With more than four-fifths of the S&P 500 companies having already reported, total earnings are up 8%, compared with expectations of a 5.9% rise.
Nvidia was one of the big gainers, up 5.27% to $216.14 after beating earnings forecasts.
- Dow 23,422.21 -0.17%
- S&P 500 2,582.3 -0.09%
- NASDAQ 6,750.94 +0.01%
- Russell 2000 1,474.53 -0.07%
- NYSE Composite 12,322.61 -0.14%
- Gold 1,275.13 -0.96%
- Oil WTI $56.88 -0.51% (5.11PM EST)
- 10-Year Treasury 2.4% +0.07bp
News Corp blasts earnings forecasts
News Corp was the biggest gainer on the S&P 500 after the publishing arm of Rupert Murdoch's global media operations reported forecast-beating results after Thursday's close.
The owner of the Wall Street Journal and The Times reported total revenue rose 4.5% to $2.06bn in the third-quarter, beating forecasts of $1.98bn, while net income rose to $68m, compared with a loss of $15m in the same period a year ago.
Shares in News Corp rose 5.15% to $15.10.