Back to top

View the PFP Archive

Profit from the Pros

Quadruple Witching, Tax Cut Talk, And End Of Year Rally

The markets pulled back yesterday with all of the major indexes closing modestly lower.

There wasn't any news per se' to send the market lower. Markets ebb and flow. And even the strongest bull markets don't go up every day. And yesterday was just one of those days.

Tax cuts are back on everyone's mind again though. Early in the morning, there was word that more progress was made on the reconciled tax cut bill. Corporate taxes were going to go from 35% down to 21% (up from the 20% that both the House and Senate had in each of their separate bills). But the Senate's original version didn't have those kicking in until 2019. So the compromise at 21%, but starting on Jan. 1, 2018, was a welcomed addition. They also incorporated limited deductions for SALT (State and Local Taxes), and capped real estate tax deductions at $750,000 from $1,000,000.

Although, later in the day, one Republican said he was against the bill if it didn't include an expansion of the child tax credit. And another Republican was wavering because of the same issue. Also, the lone Republican who voted against the original Senate bill is expected to still be a no vote on the final bill. So that suddenly puts the tally at 49. Clearly there's still kore work to do. But those in the know are still confident that a final bill will be on the President's desk by Christmas. They are expected to vote on it next week on Monday or Tuesday.

In other news, yesterday's Weekly Jobless Claims fell more than expected, shedding 11,000 new claims at 225,000 vs. views for 239K.

Retail Sales rose more than expected, gaining 0.8% vs. the consensus for 0.3%.

And the Import and Export Prices report showed that import prices were up 0.7%, in line with expectations, while export prices rose 0.5%, besting expectations for 0.3%. For perspective, both import and export prices are up 3.1% on a y/y basis.

Quadruple Witching is today (that's when index futures, index options, stock options, and stock futures expire), so there could be some volatility.

But outside of that ephemeral event, the market should quickly resume its uptrend as we head into the end of the year.


Kevin Matras

Executive Vice President, Zacks Investment Research


Until Sunday: Claim your Free Copy of Finding #1 Stocks

Finding #1 Stocks Report
One single idea changed Kevin Matras? life as an investor, enabling him to tap into the greatest force driving stock prices. In Finding #1 Stocks, Kevin reveals his top stock-picking secrets and strategies based on this powerful idea. Now you can claim a free copy of the 300-page hardcover book.

These strategies produced gains of 79%, 95%, even 153% in 2016 alone. You can take full advantage of them without attending a single class or seminar, in a lot less time than you think. Opportunity ends Sunday, December 17.

Learn more now >>

Most Popular Articles from

Play EPS Surprises With These 5 Top Stocks

An impressive track in earnings surprises generally acts as a driver in sending a stock higher. Read More »

Blockchain ETFs: Profit from the Technology Behind Bitcoin

Blockchain technology has the potential to change the world and the race for blockchain ETFs is heating up. Read More »

4 Top-Ranked Biotech Stocks Under $20 With Room for Growth

To cash in on the favorable drug/biotech trends, this is the right time to add a few stocks that have growth potential. Read More »

5 Tech Stocks That Crushed the Nasdaq in 2017

We pick five in technology which have crushed the Nasdaq on a year-to-date basis, making them very attractive investment options. Read More »

5 Careful Ways to Win with Options

More people are including options in their investments but only a few know how to win steadily. Read More »


Increase Investment Returns with Free Zacks' Portfolio Tracker

Follow your investments easily in one place. Get free email updates that alert you to major events affecting your stocks and funds, including timely recommendation changes, earnings announcements and, most importantly, earnings estimate revisions.

Click to Learn More>>

Bull of the Day: Urban Outfitters (URBN)

Can an upscale pizza acquisition push this apparel retailer's sales higher? Read More »

New Zacks Strong Buys for December 15th

Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »

Customize Your Profit from the Pros Delivery
Connect with Us:
Contact Info:

Phone: 1.800.767.3771 ext. 9339