What are the markets telling us about the new tax law signed by the President Wednesday with much fanfare.
Stocks traded off slightly on the week as the House voted once and then the Senate passed it and the House passed it again with a procedural remedy from the first vote.
It’s my believe that shares will trade off for the rest of the year on sheer profit taking off of the year-long run up in stocks. It’s still a bit unclear if the lowering of capital gains on stock profits in the new law will temper the selling until early January.
Bonds yields climbed as prices fell in a very crowded trade over the last two days suggesting big money sees continued growth through the plan.
A very interesting immediate reaction by corporations of giving bonuses and raises to their employees.
It just so happens to be a number of companies that gave this largess also have business in front of the Trump Administration whether its pending merger approval or possible regulatory punishment for misdeeds.
AT&T, Comcast and Wells Fargo fall under those parameters while Fifth Third Bank is the outlier on the bonus front with no apparent pending business with the federal government.