Wednesday , January 24 2018

US equities post first weekly loss in two months on tax jitters

epa03833894 A New York City Taxi cab is seen driving by the Nasdaq building in Times Square in New York, USA, 22 August 2013. A problem at the Nasdaq stock market halted trading in all Nasdaq-listed stocks on Thursday, including major names like Apple and Microsoft. Nasdaq sent out an alert at 12:14 p.m. on Thursday telling traders that it was 'halting trading in all stocks listed on the Nasdaq exchange Òuntil further notice.' The exchange said the issue was a result of problems with the system on which trades are recorded. Trading was also halted on all Nasdaq options markets.  EPA/JASON SZENES


The stock market actually can go down. US equities posted the first weekly loss in more than two months as investors turned leery after congressional Republicans made little progress in passing tax cuts. Shares that would benefit most from a lower levy burden led declines, though selling spread to economically sensitive stocks as credit markets flashed warnings signs about the pace of growth.
“Doubt starts to creep into investors’ minds about what the tax plan is going to be,” said Mark Kepner, managing director and equity trader at Themis Trading LLC in Chatham, New Jersey, noting the market still looks good, regardless. “This week’s dip is a healthy retreat given the rally we’ve had so far.”
The S&P 500 Index slumped 0.2 percent in the five days, finishing at 2,582.3. The bulk of the losses came in the final two sessions after the gauge closed at a fresh record high, six points shy of 2,600. Small caps in the Russell 2000 Index fell 1.3 percent for a third week of declines.
The S&P 500’s failed run at
a new round-number milestone added to selling pressure, as investors concerned about the prospects for tax cuts took the chance to get out of an equity market that has gone longer than ever without a slump of
3 percent.
While analysts debate how much the market has priced in tax reform, stocks reacted to headlines indicating cuts might not be as deep or come as soon as expected. The Senate’s version departed in meaningful ways from the House’s, especially on the timing for corporate tax cuts. Bank stocks also took a hit, ending the week down more than 4 percent, as lower corporate taxes that bolster investment would be boon to lenders. Adding to troubles for the banks was the flattest yield curve in a decade.
The S&P 500, Nasdaq, and Dow Jones Industrial Average all hit fresh highs, but with most US companies done reporting earnings and almost all bears already having turned bulls, the market may be short of reasons to continue the upward march for now.

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epa06353911 Workers cast silver into 30 kilograms bars at the Department of Precious Metals of the Glogow Copper Foundry in Glogow, south west Poland, 27 November 2017. The anodic sludge, which is a byproduct of the electrorefining of copper, is used to produce precious metals such as silver, gold and platinum-palladium concentrate. From the beginning of the year, more than 3.1 tons of gold and over 1,000 tons of silver were produced.  EPA-EFE/MACIEJ KULCZYNSKI POLAND OUT

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