Dow, S&P 500 and Nasdaq rocket to new all-time records

“The Dow Jones Industrial Average, S&P 500 and Nasdaq all scored new record closes on Thursday, Jan. 11, as Wall Street got a boost from some of its biggest industrial and energy names,” Joseph Woelfel reports for TheStreet. “The Dow jumped 205 points, or 0.81%. The blue-chip index was led by Chevron Corp., up 3%, General Electric Co., which rose 0.5%, Caterpillar Inc., which gained 2%, and Boeing Co., up 2.4%. The S&P 500 gained 0.70%, and the Nasdaq also rose 0.81%. Apple Inc. shares rose 0.5%.”

“Global bond markets steadied on Thursday after officials in China dismissed a report that suggested it could slow or even halt its future purchases of U.S. government debt as ‘fake news,'” Woelfel reports.

“”Walmart Stores Inc. said Thursday it would pay a one-time bonus to its U.S. workforce and boost its minimum wage to $11 an hour following last year’s overhaul of U.S. corporate taxes,” Woelfel reports. “The wage boost will take effect on Feb. 17, the company said, and will add $300 million to its 2018 budget while the bonuses of up to $1,000 paid to ‘eligible associates’ in the U.S. with at least 20 years’ service will add an additional $400 million to costs over the company’s fiscal year, which ends on Jan. 31, Walmart said.”

 
Read more in the full article here.

“Economists surveyed by The Wall Street Journal say President Donald Trump has had generally positive effects on U.S. economic growth, hiring and the performance of the stock market during his first year in office,” Ben Leubsdorf reports for The Wall Street Journal. “The professional forecasters also predicted 2018 would see solid growth and a continued decline in the jobless rate. One factor: the tax cuts signed into law by Mr. Trump in December, which most economists say will boost the economy for several years at least.”

“More broadly, most forecasters surveyed by the Journal suggested Mr. Trump’s election deserves at least some credit for the economy’s recent strength,” Leubsdorf reports.

“Asked to rate Mr. Trump’s policies and actions to date, a majority of economists said he had been somewhat or strongly positive for job creation, gross domestic product growth and the stock market. Most also said he had been either neutral or positive for the country’s long-term growth trajectory, while his influence on financial stability was seen as largely neutral,” Leubsdorf reports. “‘There is definitely a sense in the business community that the president’s actions on taxes and regulations have led to a more pro-growth environment for them to operate,’ said Chad Moutray, chief economist at the National Association of Manufacturers.”

Read more in the full article here.

MacDailyNews Take: A strong economy bodes well for Apple and everyone else as a rising tide lifts all boats!

SEE ALSO:
S&P 500 and Nasdaq rise to records on first trading day of 2018 – January 2, 2018
U.S. employment jumps more than expected in November, boosts U.S. stocks – December 8, 2017
Goldman Sachs sees U.S. unemployment rate hitting lowest level since the late-1960s – November 20, 2017
American consumer confidence soars to highest level since December 2000 – October 31, 2017
U.S. jobless claims plunge to lowest level since 1973 – October 19, 2017
U.S. economy picks up steam; second-quarter GDP up 3.0% reflecting robust consumer spending and strong business investment – August 30, 2017
U.S. consumer confidence shows Americans upbeat on jobs, economy – July 25, 2017

27 Comments

  1. LOL this article. The new tax plan won’t take effect until a year from now; we are still seeing benefits from under Obama’s tax plan. To make ppl think they are getting something, don’t be fooled. Walmart etc will give a bonus and then fire more workers as there is no more consumer demand than before. Trickle down economics and giving tax cuts to the rich never worked and always leads to deficits and recession.

          1. Predrag,

            You are missing one of the most important “features” of the tax bill. The IRS will begin withholding less from people’s paychecks almost immediately—in time to benefit incumbent Republican legislators in their primary contests. The ultimate impact in terms of smaller refunds will not hit anyone until early 2019—too late to hurt Republicans in the November elections.

    1. Look around you, Dude. People are getting raises! We have “help wanted” signs everywhere! Prosperity would not happen under Obama if he had a freaking DECADE!

      “Walmart will fire more people” you say. But those people can now find jobs! Under Obama they could only hope for “benefits”, — they were beholden to politicians, just as the liberals like it!

      PS. I don’t like Trump. But Obama was ridiculous. His policies were bad for real people. His policies were only good for politicians who doled out the benefits. Good riddance!

      “The tax plan won’t take effect until a year from now” you say. Umm.. so maybe some people are planning ahead?

      Your post is just one stupid statement after another.

      1. Perhaps you should go look at the BLS statistics a little more closely (i.e., with math).

        For example, on job growth. Using Obama’s second term’s average, Trump’s first year’s monthly new jobs reports average was 20% lower (that’s bad, not good).

        For example, on wage growth. The average for this past year was roughly 2.5% & effectively unchanged from Obama. Historically, during an expansion period this number runs at around 4%.

        And to give credit where credit is due, yes people are planning ahead – – and that’s what’s been getting “baked into” the stock market gains for several months now. When you consider that the Corporate income tax rate averaged roughly 18% when the rate was 35% (this shows how many deductions they write off), with the rate dropped now to 21% but without any major loopholes closed, they’re going to continue to get the same magnitude of write-offs, which means that Corporations are going to have an effective average rate next year in the ballpark of only 4%.

        There’s a lot more that can be said, but the general trend is that there’s a lot of the future being burned in order for some very short term gains right now — and what that also suggests is that the next recession is going to make this last one look like a minor ‘scraped knee’. The most scary part IMO is just how much hyper-inflation might be integral to it to devalue the US currency (hint: the USD is already heading down … go look at the charts).

      2. NOTHING…absolutely nothing has actually occurred yet in terms of the tax reform law changing the economy. Nothing.

        The stock market is continuing to rise (as it has for many years straight), and it has received a boost from the passing of the tax reform law. But growth does not suddenly occur as a result of the passing of that law. Similarly, we have yet to see the negative consequences of the law in terms of increased deficits.

        I am not impressed by the Walmart salary increase. It was long overdue and was going to happen anyway. I am even less impressed by the one time bonus. The tax cuts are permanent, so Walmart will be reaping $B in rewards for years to come. I would like to see a comparison of the tax benefits that Walmart will receive relative to the costs of the salary increase plus the one time bonus. Will the surplus to Walmart result in growth and associated job growth? The likelihood, imo, is that the majority of the surplus will go into increased dividends and stock repurchases. The wealthy, as usual, will benefit the most.

        You have to look at the whole economy and trace the effects of the new tax law to understand its full effect. As usual, nearly all trails of money end up at the top. Please keep in mind that this is borrowed money on top of a $20T debt and a $660B deficit in 2017. When the economic @!#$* hits the fan down the road, it is the poor and middle class who will suffer the most. The wealthy will ride their golden carpets while spending cuts gut social services and further allow aging infrastructure to crumble.

        Those tax cuts are NOT free, folks. We will pay, sooner or later. Congress has lost its mind along with any sense of fiscal responsibility.

        Watch the deficit and debt figures in coming years. The Republicans just accelerated the race to the cliff of economic collapse and debt default.

      1. I will pay extra if you will, botty!

        You are so frigging hypocritical. You and your ilk call taxes “theft,” but expect me to pay more to cover your tax cut? And, somehow, you think that you have “scored” a point in the debate? That just shows the weakness of your reasoning and intellect.

        As I have said before, adding massive tax cuts to a $20T debt and $660B (and growing under Trump) deficit in an economy that continues to grow steading (if slowly) over the long term with historically low unemployment and interest rates is utterly ridiculous.

        What happened to the Republican drive for a balanced budget? Why are tax cuts and defense spending increases and social program decreases the only budget approaches that Republicans have preached for the past few decades? Why do Constitution-thumping Republicans call taxes “theft”? That is so unpatriotic that it verges on treason. And why does everyone seem to be so poor at math that they cannot understand the tax cut economic disaster that was initiated by George Bush and reintroduced by Trump?

        Spending can only be cut when people feel the pain of paying for the services that they consume. Raise taxes to balance the budget and you will soon see action on reducing spending. But Congress has taken the opposite approach for many years, irresponsibly doling out “free” borrowed money that mainly benefits wealthy political donors.

        You will not change your mind, botty. You appear to be incapable of mental growth and flexibility. But the universe is driven by physics and math, and doesn’t give a #$@*% what you think or believe.

  2. MDN gets fed from controversial content. Political-based banners tend to create interest and discord amongst surfers. Ergo…MDN gets more web hits, people feel angst, and the MDN economy booms! 😉

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