Dow soars 203 points higher to record as Wall Street cheers U.S. Senate passage of major tax bill

“U.S. stocks traded sharply higher on Monday as investor sentiment was boosted the Senate narrowly passing a major tax bill over the weekend,” Fred Imbert and Alexandra Gibbs report for CNBC. “The Dow Jones industrial average rose 203 points, with Boeing and Walt Disney leading advancers on the 30-stock index. The Dow also hit a record high and briefly traded more than 300 points higher. The S&P 500 gained 0.5 percent, with financials and telecommunications as the best-performing sectors, rallying 2.1 percent and 1.8 percent, respectively. The index also reached an all-time high.”

“The Nasdaq composite lagged, trading 0.1 percent lower as Facebook, Alphabet and Netflix all traded lower,” Imbert and Gibbs report. “‘You’re seeing tech lagging and financials leading. This is some rotation on the back of the Senate vote,’ said Lindsey Bell, investment strategist at CFRA.”

In the early hours of Saturday morning, Senate Republicans managed to narrowly pass a bill to revamp the country’s tax system. The final vote came out as 51-49 in favor,” Imbert and Gibbs report. “The GOP, however, still need to overcome future obstacles in order for the Senate and the House to craft a joint bill, which will then be presented to President Donald Trump. Republicans hope a deal will be achieved by Christmas.”

“‘Investors this week will look to see progress between the House and Senate’s joint bill,’ said Nicholas Colas, co-founder of DataTrek Research. ‘Both chambers still have to reconcile differences between their bills, such as implementing corporate tax cuts immediately or in 2019,'” Imbert and Gibbs report. “U.S. stock index futures had also risen sharply before the open on Monday. Dow futures briefly traded more than 250 points higher.”

Read more in the full article here.

MacDailyNews Take: Of course, we’ll have to wait for the whole thing to shake out and see the actual rates and details. It would certainly be an excellent development, and long overdue, if the U.S. can modernize U.S. corporate and personal 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.

Under the current U.S. corporate tax system, it would be very expensive to repatriate that cash. Unfortunately, the tax code has not kept up with the digital age. The tax system handicaps American corporations in relation to our foreign competitors who don’t have such constraints on the free flow of capital… Apple has always believed in the simple, not the complex. You can see it in our products and the way we conduct ourselves. It is in this spirit that we recommend a dramatic simplification of the corporate tax code. This reform should be revenue neutral, eliminate all corporate tax expenditures, lower corporate income tax rates and implement a reasonable tax on foreign earnings that allows the free flow of capital back to the U.S. We make this recommendation with our eyes wide open, realizing this would likely increase Apple’s U.S. taxes. But we strongly believe such comprehensive reform would be fair to all taxpayers, would keep America globally competitive and would promote U.S. economic growth.Apple CEO Tim Cook, May 21, 2013

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      1. Lobbyests, like American taxpayers, and which is barely 400 pages long, as opposed to the clusterf– obamacare bill which was thousands of pages long and written entirely by lobbiests…

        1. The pic was photoshopped, thought everyone knew it is actually John Daly. The first photo didn’t come up. They put Trump’s head on Daly’s body.
          Here is your boy, who could use a Gut Buster>

        1. I will tell you this:
          The overwhelming majority of Millennials want a party that is NOT the Democratic or Republican Party. Their dislike of the Democrats is only exceeded by their loathing for Republicans. By headcount they will soon be the majority of voters. With any luck both will join the Federalists, Whigs and Know-Nothings.

          This same generation is causing great upheaval in the consumer market where over 75% of the top 100 consumer brands in this country are in sharp decline- primarily among these adults. They do not want what mom and dad had or wanted, they tend to be quite skeptical and a significant portion are socially quite liberal.

          If we are lucky Obama will be the last Democrat and Trump the last Republican to ever serve as POTUS.

        2. “The overwhelming majority of Millennials…”

          The most over-rated, over-privilaged, irrelevant, bunch of spoiled brats in American history. Their only redeeming quality is that they don’t vote; may that continue to be the case forever. Also hopefully most of them don’t breed either and eventually die off alone and childless.

      1. Bot…

        I don’t know if a Democrat will never occupy the White House again. Trump could make money rain down from the sky and liberals would still hate him because he laughs at them and makes fun of them. The Republicans hate him because he simply isn’t one of them, and doesn’t play by their rules, or even know where their dusty old rule book is kept. He’s a common enemy of both sides. The consummate outsider.

        The only way he’ll be re-elected is by winning the popular vote and the media is taking care of that by hammering, and hammering, and hammering. They’ve got nothing, but the hammer anyway adjusting perceptions, tweaking reality, social engineering on a mass scale.

        If the man sneezes it’s a racist sneeze. He single-handedly energized the white supremacist movement in the country. It couldn’t possibly have had anything to do with the asinine and absurd leftist insanity of the last 8 years.

        They own perception. So you’ve got the entrenched left, the entrenched right, the news and entertainment media, all working against this guy.

        In the meantime, they’re grooming replacements like Kamala Harris, who is a woman, extremely smart, good-looking, half black, half east Indian, (counts as Asian as well), spits out socialist doctrine like scripture, and the media adores her. If she were running against Trump right now, my guess, notwithstanding the work the administration has accomplished while constantly at war with anti-Trump forces, she’d win.

        I mean look at idiots like Tim Cook. He’s been whining since 2011 about tax cuts to repatriate Apple cash. Does he get it from liberals? Hell no. He finally gets it from Trump. Do you think he’d give the administration any credit for it? Hell no. It’s more important to Cook to play hero to social justice issues than see the wealth of his company increase as it should.

        1. Trump is a third party by proxy, his re-election will be a landslide. The democrats have been reduced to a coastal lunatic fringe party, the 2018 midterms will be a massacre. By, 2020, The Plantation Party will be virtually extinct.

        2. They think that winning New Jersey (which is a deep blue state, and had Gov. Christie who had the very unpopular “beachgate” photo), and Virginia which is dominated by the Washington DC suburb is indicative of how they will do in 2018. They will be massacred and not see it coming.

      2. Not anytime soon, especially if the next Republican can build upon Trump’s new coalition which includes all the white working class voters that the Democrat Party used to care about before they turned massively racist anti-white identitarian bigots.

  1. So rich people are really happy about this.
    Do you think:
    A) It’s because it benefits them.
    B) It helps the middle class and less fortunate.
    Don’t say both because that would be just insane.

    1. So Jeff… here’s what happens. Rich people tend to spend the money they keep. This spurs the economy, creates jobs, increases salaries, etc. Companies spend more on big-ticket purchases and services. I.e. let’s upgrade all these Macs and hire a consultant to handles it and get a new document management system installed. Also making money the consultant hires a local student to assist, and he can finally get rid of those stupid paper shades on the giant windows in the loft, but will need to hire assistants for that as well.

      Not to mention that 50% of the people in the country don’t pay taxes, and the rich are paying 70%+ of our taxes anyway.

      The economy gets spurred, Wall Street gets excited, the value of retirement funds go up, and so on.

      Why is it people like you would seem to prefer that the economy get worse, which hurts the poor more than anyone, as long as the rich get poorer. Wouldn’t it be better if the wealth along the spectrum increases?

  2. Corporations, already awash in cash, will now have more to stuff into executive compensation and stock buybacks, which are also designed to maximize executive compensation.

    Meanwhile education and educators get shafted and future generations are handed a bigger debt.

    Thanks greedhead corporate puppets. We all lose.

        1. • The White House
          • The Senate
          • The House
          • The Supreme Court
          • The Governorships
          • The State Houses

          if this is “losing,” hallelujah.

  3. This is tax bill is obscene. 60% of the benefits go to the top 1% worsening income inequality and adding to the federal deficit. There is no shortage of low cost capital for corporate investments hence the vast majority corporate tax cut will go directly to shareholders which are disproportionally the wealthy. This bill is not about growing the economy, but about enriching the political donor class.

    Alt-right Republicans are fake Republicans. True conservative Republicans spend within their means, defend the Constitution (including the First Amendment), and protect the environment. Donald Trump and Steve Brannon have destroyed the Grand Old Party. Unfortunately there appear to be very few real Republicans left.

  4. Sigh. Two words Kansas and North Carolina. Both massive Republican cuts to taxes. Kansas is already in the shithole and NC is heading there. Might as well screw up the whole country all at once. Now that’s Republican efficiency.

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