Stability returned to US stock market on Friday after yesterday’s pull back as investors were encouraged by signs that tax cuts by year end were growing more and not less distinct. Investors drove prices higher as indices rallied broadly to record highs.
The Dow rose 142 points or +0.58% Techs were among the leaders with Intel up +2.91% and Microsoft up +2.41%. The blue-chip index performance rose +5.63% over one month and was up +24% year to date. The S&P 500 rose 23 points or +1.02% and NASDAQ climbed 80 points or +1.18%. Small caps also made a comeback and the Russell 2000 jumped +1.6%.
Energy was the only sector making losses and slipped -0.15%. CSX Corp fell -7.85% and other laggards were energy companies Chesapeake Energy down -3.57% and Noble Energy fell -3.06%.
Meanwhile, investors remain riveted by the back and forth on tax reform as the Republicans makes their final push to get tax legislation to President Trump before Christmas. On Friday, two holdouts to the tax plan, Senators Marco Rubio and Bob Corker, said they would now support the bill after last-minute concessions were made to gain their support, thus narrowing the number of undecided senators. The Republican quest for the sweeping overhaul is now seemingly days away.
- Dow 24,651.15 +0.58%
- S&P 500 2,675.72 +0.89%
- NASDAQ 6,936.58 +1.17%
- Russell 2000 1,530.87 +1.59%
- NYSE Composite 12,697.88 +0.54%
- Gold 1,258.6 +0.12%
- Oil WTI $57.31 +0.47%
- 10-Year Treasury 2.35 +0.02%
Market relief on tax reform also lifted the dollar and ICE dollar index rose +0.26% to 93.93. The euro fell -0.2% to $1.1756 and the pound fell to $1.3319. Gold was up +0.12% to $1,258.6 per ounce.
Quote of the day: ““In the end, after 11 years in the Senate, I know every bill we consider is imperfect and the question becomes is our country better off with or without this piece of legislation. I think we are better off with it. I realise this is a bet on our country’s enterprising spirit, and that is a bet I am willing to make.” Source: Senator Bob Corker of Tennessee in a statement on why he would support the tax bill after all.