After a bang-up year, the Street’s last market day for 2017 finished on a whimper as stocks closed lower on thin volume. The Dow fell -0.39%, S&P 500 slid -0.48% and NASDAQ dropped -0.67%. Market focus has shifted to what companies will do with their tax savings in 2018.
Leading the blue-chip index was Coca-Cola up +0.48% and General Electric up +0.75%. On the S&P 500, gainers were Signet Jewelers up +1.07% and NRG Energy up +1.68%. Dragging on the index was Under Armour Class A down -6.93% and Under Armour Class C down -5.80%. A weaker dollar drives the price of gold above $1,300 per ounce. International brent crude rose +0.71% to $66 a barrel.
- Dow 24,741.49 -0.39%
- S&P 500 2,674.98 -0.48%
- NASDAQ 6,903.39 -0.67%
- Russell 2000 1,540.33 -0.56%
- NYSE Composite 12,840.77 -0.10%
- Gold 1,305.07 +0.66%
- Oil WTI $60.16 +0.56%
- 10-Year Treasury 2.411 +0.21%
By any measure, the markets have had another ebullient performance this year with a number of barriers breached as the Dow cruises towards 25,000. NASDAQ also briefly went beyond 7,000 for the first time on 18 December and has a one-year return of 25%.
As President Trump reminds us through his regular short-hand communications on Twitter it's had 70 record closes this year helped in part by the tax reform bill recently passed by Congress.
The market has had a nine-year rally and investors have an optimistic outlook for 2018 with corporate earnings expected to gain from the bounty of Trump's self-described 'big, beautiful' tax cuts.
70 Record Closes for the Dow so far this year! We have NEVER had 70 Dow Records in a one year period. Wow!— Donald J. Trump (@realDonaldTrump) December 18, 2017
Goldman takes a hit from 'big beautiful' tax cut
Goldman Sachs announced today that it would take a one-time charge to its profits of around $5bn as a result of the tax reform law. Much of the charge stems from a tax on earnings overseas and a write down on US deferred assets writes Bloomberg.