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[rooster59]

Wall Street closes at records with tax overhaul in sight

By Sinead Carew

 

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., December 14, 2017. REUTERS/Brendan McDermid

 

NEW YORK (Reuters) - Wall Street's three major indexes climbed to record closing highs on Friday with broad-based gains as a long-awaited bill to cut corporate tax rates looked like it would win enough support from lawmakers to pass.

 

U.S. congressional Republicans were expected to release final details of their plan late on Friday, with decisive votes planned for next week after lawmakers who had previously criticized the bill started to voice their support.

 

Republican Senator Bob Corker joined Senator Marco Rubio in signaling support in the late afternoon. Rubio had criticized the initial proposal, saying it did not give enough tax relief to working families, while Corker, had expressed concerned about the bill's impact on the federal deficit.

 

The bill is expected to drop corporate tax rates to 21 percent from 35 percent and some investors are betting that companies will put most of the savings toward a boost in shareholder payouts.

 

"It's meaningful in terms of its impact on shareholders. You're going to see an increase in stock buybacks, maybe some dividend payouts," said David Joy, chief market strategist at Ameriprise Financial in Boston.

 

"By and large there's a high correlation between higher equity prices and consumer confidence and consumer spending. Some translates into rising consumer sentiment and better feelings about job security," he said.

 

However, as the tax package has evolved, it has tilted increasingly toward benefiting businesses and the wealthy, a trend that concerned some lawmakers.

 

The S&P was up 1 percent after Corker announced his support, but couldn't sustain those levels as investors awaited tax bill details, according to Brian Battle, director of trading at Performance Trust Capital Partners in Chicago.

 

"We don't know how stimulative it will actually be," said Battle. "There shouldn't be any surprises. The stuff they were apart on seems manageable."

 

The Dow Jones Industrial Average <.DJI> rose 143.08 points, or 0.58 percent, to 24,651.74, the S&P 500 <.SPX> gained 23.8 points, or 0.90 percent, to 2,675.81 and the Nasdaq Composite <.IXIC> added 80.06 points, or 1.17 percent, to 6,936.58.

 

The S&P 500 and the Dow closed higher for the fourth week in a row, while the Nasdaq saw its first weekly gain out of three.

 

The S&P's Energy index was the only one of its 11 majors in the red with a 0.03-percent dip. Technology <.SPLRCT> and Healthcare <.SPXHC> indexes led the advance with 1.24 and 1.17 percent gains, respectively.

 

The S&P financial index <.SPSY> closed up 1.04 percent, paring earlier gains. Banks are seen as one of the biggest beneficiaries of tax reform.

 

The S&P consumer staples index <.SPLRCS> rose 1.12 percent. Costco <COST.O> was its biggest percentage gainer, up 3.7 percent, after the retailer reported upbeat results.

 

CSX <CSX.O> tumbled 7.6 percent. The railroad said its Chief Executive Hunter Harrison was taking medical leave amid its controversial turnaround plan.

 

"Quadruple witching," the simultaneous expiration of U.S. options and futures contracts for stocks and indexes, boosted volume to 10.7 billion shares, well above the 6.73 billion average over the last 20 trading days, and the highest since a year ago.

 

Advancing issues outnumbered declining ones on the NYSE by a 2.24-to-1 ratio; on Nasdaq, a 2.32-to-1 ratio favored advancers.

 

The S&P 500 posted 37 new 52-week highs and 1 new low; the Nasdaq Composite recorded 85 new highs and 54 new lows.

 

 

-- © Copyright Reuters 20174-12-16

[BuaBS]

Bubbles , bubbles and bubbles .

[attrayant]

If this story doesn't clue you in on the reason for the tax bill, nothing will.

[EVENKEEL]

34 minutes ago, attrayant said:

If this story doesn't clue you in on the reason for the tax bill, nothing will.

It's good news for those with 401K's, TSP's which invest heavily in stocks across the board. I get a break in my fed taxes, my retirement fund is increasing nicely. I'm gearing up for full retirement in 2 yrs.

[ilostmypassword]

27 minutes ago, EVENKEEL said:

It's good news for those with 401K's, TSP's which invest heavily in stocks across the board. I get a break in my fed taxes, my retirement fund is increasing nicely. I'm gearing up for full retirement in 2 yrs.

I was wondering why the Republicans passed such a bizarre tax bill. Now I know. It was to benefit you. Well, that's one way to legislate.

[GOLDBUGGY]

Nice to think that some struggling business is getting some tax break from paying 35% to now 21%, so he can expand his business and create some new jobs, but these tax breaks are geared up for large corporations. 

 

With these tax dollars many companies will simple buy back there own shares. What that causes is a share price increase and justification to give the Board of Directors and CEO's huge Multi-Million Dollar Yearly Bonuses.

 

Or they will give some back as Company Dividends, which if you have disposable income and can afford to buy some shares in the first place, you get some of it back. In the mean time the Average Joe on the street trying to support his family is struggling and still paying +35% in Income Taxes already, not including Sales Tax or Property Tax.

 

Nice to support a Small Business in tax breaks who need them. But the Little Guy on the street needs a tax break to, and for sure more than some large Billion Dollar Corporation who already pays out crazy amounts of money to there Executive Team already.  

[ilostmypassword]

4 hours ago, GOLDBUGGY said:

Nice to think that some struggling business is getting some tax break from paying 35% to now 21%, so he can expand his business and create some new jobs, but these tax breaks are geared up for large corporations. 

 

With these tax dollars many companies will simple buy back there own shares. What that causes is a share price increase and justification to give the Board of Directors and CEO's huge Multi-Million Dollar Yearly Bonuses.

 

Or they will give some back as Company Dividends, which if you have disposable income and can afford to buy some shares in the first place, you get some of it back. In the mean time the Average Joe on the street trying to support his family is struggling and still paying +35% in Income Taxes already, not including Sales Tax or Property Tax.

 

Nice to support a Small Business in tax breaks who need them. But the Little Guy on the street needs a tax break to, and for sure more than some large Billion Dollar Corporation who already pays out crazy amounts of money to there Executive Team already.  

There are many many flaws with the republican tax bill. But the average joe or jill in economic terms is not paying 35 percent in federal income tax. However, when all taxes which includes state, local and federal are calculated, there is very little difference in the total percantage paid by individual US citizens with vastly differing incomes.

[isaanbanhou]

The top 20% of American wealth owns 92% of the stocks in America. 52 percent of U.S. adults owned stock in 2016. Since Gallup started measuring this in 1998, that's only the second time ownership has been this low. These figures include ownership of an individual stock, a stock mutual fund or a self-directed 401(k) or IRA.

 

www.npr.org/2017/03/01/517975766/while-trump-touts-stock-market-many-americans-left-out-of-the-conversation

 

 

8 hours ago, attrayant said:

If this story doesn't clue you in on the reason for the tax bill, nothing will.

 

 

Yes, the rich will get richer and the bottom half of population will suffer

[GOLDBUGGY]

8 hours ago, ilostmypassword said:

There are many many flaws with the republican tax bill. But the average joe or jill in economic terms is not paying 35 percent in federal income tax. However, when all taxes which includes state, local and federal are calculated, there is very little difference in the total percantage paid by individual US citizens with vastly differing incomes.

To just look at Federal Income Taxes is very short sighted. In Canada for example this is just the Base Line Tax. From that you add Provincial Income Taxes, or another 50%. Then there is Property Tax, to support your schools, street cleaners, fire department, and police, and then add the Provincial Sales Tax, Inheritance Tax, Tax on New Cars, Tax on New Houses, and Hell knows what other Tax.

 

Let's put it to you this way! You would be lucky to actually see and keep half of the money you actually make. You are probably worst off now then the Serfs working the land in Old England, as at least they got to keep 50%.

 

Let me ask you this! Can you say the same about this and this applies for people like Warrent Buffet or Bill Gates? That they only get to keep 50% of the money they make? And then you say there is no difference in percentages paid by individuals even though there are still many flaws in the Tax Bill?

 

Yes! There are many flaws in this Tax Bill! Nothing new here! Same Old Same Old! The Rich get Richer and the Poor get Poorer. That is what this Tax Bill is all about! If you put your glasses on you would easily see that.   

[GOLDBUGGY]

9 hours ago, ilostmypassword said:

There are many many flaws with the republican tax bill. But the average joe or jill in economic terms is not paying 35 percent in federal income tax. However, when all taxes which includes state, local and federal are calculated, there is very little difference in the total percantage paid by individual US citizens with vastly differing incomes.

Let me put it this way!

 

When the Average Joe and Jill on the street are stuck into a 25 year mortgage for buying an over inflated house price, so they have there own roof over there head, then they are struggling. They don't need to Scream Uncle to prove that. 

 

In the mean time, the Executive Team on some Multi-Billion Dollar Corporation, where the norm and part of there compensation package is for them to be able to buy Warrents (Compnay Shares) at a greatly reduced price, then buy back the Compnay Shares, which drives this price upward, making there Company Warrants much more valuable.

 

Yeah! I can now see why this is so fare! . 

[ilostmypassword]

3 hours ago, GOLDBUGGY said:

To just look at Federal Income Taxes is very short sighted. In Canada for example this is just the Base Line Tax. From that you add Provincial Income Taxes, or another 50%. Then there is Property Tax, to support your schools, street cleaners, fire department, and police, and then add the Provincial Sales Tax, Inheritance Tax, Tax on New Cars, Tax on New Houses, and Hell knows what other Tax.

 

Let's put it to you this way! You would be lucky to actually see and keep half of the money you actually make. You are probably worst off now then the Serfs working the land in Old England, as at least they got to keep 50%.

 

Let me ask you this! Can you say the same about this and this applies for people like Warrent Buffet or Bill Gates? That they only get to keep 50% of the money they make? And then you say there is no difference in percentages paid by individuals even though there are still many flaws in the Tax Bill?

 

Yes! There are many flaws in this Tax Bill! Nothing new here! Same Old Same Old! The Rich get Richer and the Poor get Poorer. That is what this Tax Bill is all about! If you put your glasses on you would easily see that.   

I think you should read my response again. I was actualy agreeing with the point you are trying to make. The right wing consistently points to income tax as proof that the rich are paying more than their fair share. I pointed out that this doesn't take all tax payments into account.

That said, this doesn't excuse blatantly misstating the facts as  you did when you wrote . "In the mean time the Average Joe on the street trying to support his family is struggling and still paying +35% in Income Taxes already, not including Sales Tax or Property Tax." That is a false statement. The facts are damning enough. We don't need you to invent new ones.

[GOLDBUGGY]

4 hours ago, ilostmypassword said:

I think you should read my response again. I was actualy agreeing with the point you are trying to make. The right wing consistently points to income tax as proof that the rich are paying more than their fair share. I pointed out that this doesn't take all tax payments into account.

That said, this doesn't excuse blatantly misstating the facts as  you did when you wrote . "In the mean time the Average Joe on the street trying to support his family is struggling and still paying +35% in Income Taxes already, not including Sales Tax or Property Tax." That is a false statement. The facts are damning enough. We don't need you to invent new ones.

How many people in there 30's and 40's do you know that own there own house? That own there own car? That aren't paying off Student Loans? That don't have children to support and to cloth and feed? That don't have kids they need to send to college in future years? That haven't lost there job from downturn to the next downturn? 

 

When you owe more money on your house than what you can pay off for many years, that is struggling My Friend! Most people have long term debts that make them prisoners to society for many years to come. Most people are worth more dead than alive. 

 

No! We don't live like in the Slums of Bombay, which I have seen! But do we have to to get a Tax Break like these Multi-Billion Dollar Companies who Excutives Annual Bonus this year will be more than what you and your entire family make this year?