As we headed into the long holiday weekend, the markets continued to climb as tax reform moved forward. For the week, the S&P 500 closed up 0.29%, the Dow rose 0.43%, and the NASDAQ gained 0.35%. International stocks in the MSCI EAFE increased by 1.23%.
Before leaving for his holiday vacation, President Trump signed a new tax bill and a measure to temporarily delay a possible government shutdown. Supporters of the $1.5 trillion tax cut, which dramatically reduces the corporate tax rate, believe it will encourage businesses to invest, hire more workers, and increase wages. Some companies are already celebrating by offering bonuses to their employees and promising to improve infrastructure in the workplace.
The historic bill is the largest tax revamp in more than 30 years and makes a number of changes to the federal tax system, including:
While this just might be one of the Nations largest tax cuts, it opens the door for a few questions. How will this new Tax Bill impact your current retirement?
Though popular cryptocurrencies experienced volatility, strong economic news helped round out the week on a positive note.
Housing Picks Up: Home sales rose in November, with new home sales recording the largest jump in 25 years. Existing home sales also beat analyst forecasts and jumped to the highest rates seen during the economic expansion. The housing numbers mirror the solid, year-long market performance.
GDP Grows: We received the final reading of 3rd quarter Gross Domestic Product, which showed the economy grew 3.2% between July and September. Data suggests—thanks to a strong housing market—that 4th quarter GDP should rise by 3% as well.
Over the holidays, we’ll keep tabs on the markets and look toward economic developments in 2018.
As always, please contact us if you have any questions.
Monday: Markets Closed for Christmas Day
Wednesday: S&P CoreLogic Case-Shiller Home Price Index, Consumer Confidence, Pending Home Sales Index
Thursday: Jobless Claims