Dow and S&P 500 hit all-time highs as chance of passing U.S. tax reform bill increases

“Stocks rallied on Thursday as the possibility of the Senate passing a bill aimed at overhauling the U.S. tax code increased,” Fred Imbert reports for CNBC.

“The Dow Jones industrial average surged 356 points, breaking above 24,000 for the first time, with Goldman Sachs leading advancers on the 30-stock index. The S&P 500 reached an all-time high, advancing 1 percent, with industrials and financials as the best-performing sectors,” Imbert reports. “Tech giants like Facebook, Amazon, and Apple all traded higher.”

“Sen. John McCain said Thursday he would support the bill, making it more likely that the GOP-led Senate will pass its bill,” Imbert reports. “The Senate is expected to vote later on Thursday. If the upper chamber’s bill passes, the House and Senate would have to work on a new bill they can send to President Donald Trump.”

“Tax reform was one of Trump’s main talking points during his campaign last year. After he won, expectations of lower corporate taxes grew in the stock market, helping equities jump to record highs,” Imbert reports. “Thursday also marked the last trading day of November. The Dow was on track to post its first eight-month winning streak since 1995. The S&P 500 was on track to post its longest monthly winning streak since 2007.

Read more in the full article here.

MacDailyNews Take: Obviously, we’ll have to wait for the whole thing to shake out and see the actual rates and details. It would certainly be great, and long overdue, if the U.S. can modernize U.S. corporate taxation and come up with a workable solution that benefits the country, U.S. companies and their many millions of employees.

As we’ve been saying for many years now, the U.S. corporate tax rate is obviously way too high and exceedingly anachronistic.

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  1. the effective tax rate of corporations the size of Apple is zero. corporations are awash in capital and have been for several years now. they could be doing all the things you claim they’ll do if mean old liberals will just stop taxin’ their billions in profits. they haven’t and they won’t even if they can repatriate their offshore holdings, dummies

    1. If Apple’s effective tax rate is “zero”, I’d like them to send all that tax to me then. Last year, it was something like $10B to the US Treasury. That’s PAID, not deferred. The deferred amount, about $5B is additional.

    2. You don’t have a clue, do you, Pass throughs? Apple, as does every publicly traded corporation, must publish its current effective tax rate in its quarterly and yearly financial statements filed with the Securities and Exchange Commission, a regulatory agency of the Federal Government. Apple’s effective Tax rate averages around 25%-28%, not ZERO as you claim. You can look it up in their Quarterly Financial 10-K
      reports which are available on line. Their last one is available here for the 4th quarter 2017:

      Their effective tax rate for that last quarter was 25.4%. That is certainly nowhere near zero.

  2. All bubbles eventually find a pin. Can’t say when, but a correction is coming.
    My guess is sooner rather than later.
    BTW- the Republican CONgress and Drumpf get to raise the debt ceiling or we get a shutdown for Christmas. Of course, if they fail it will be the fault of the evil “Democrat” Party

    1. w/ posts and then you throw the Jr High partisan pitch. “Con” pinned to R’s and the D word for the prez. C’mon.
      What we are seeing by both parties is just bizarre and inexcusable. If someone claims they know what’s going on with the economy and to whom to credit/fault, they need to get off their high horse.

    1. like there’s no left-wingers voicing their partisanship simultaneously? Your blindness (acceptance” to “the other” comments, just shows your blind political bias. If it would help, I’ll warm some warm milk for you?

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