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U.S. stocks registered modest gains on Wednesday, as advances in major tech players offset declines in energy stocks. The technology sector snapped a five straight session losing streak to end in the green, buoyed by gains in Facebook, Inc. and Microsoft Corporation (MSFT - Free Report) . But, the broader market largely continued its winning run after the Republicans passed the U.S. tax reform bill for the first time in 30 years.
Overall, investors found few catalysts in one of the lowest-volume weeks of the year. Trading volumes in the U.S., in fact, remained at its lowest level in three years in 2017. Only on an average 6.43 billion shares were traded each day this year. Last year, about 7.22 billion shares were traded each day.
How the Major Bourses Fared?
The Dow Jones Industrial Average (DJIA) increased 28.09 points, or 0.1%, to 24,774.30. The S&P 500 Index (INX) went up 2.12 points, or 0.1%, to 2,682.62. The tech-laden Nasdaq Composite Index (IXIC) closed at 6,939.34, gaining less than 0.1%. A total of 4.36 billion shares were traded on Wednesday, lower than the last 20-session average of 6.79 billion shares. Advancers outnumbered decliners on the NYSE by a 1.23-to-1 ratio. On Nasdaq, a 1.04-to-1 ratio favored advancing issues.
What’s Driving the Broader Equity Market?
Jubilant Republicans delivered a tax bill to President Trump before Christmas, as promised. The Republican tax plan got the final approval by the House that gave Corporate America a massive permanent tax break.
Republicans successfully countered opposition from Democrats to pass the bill that will slash corporate taxes and provide temporary tax relief to both wealthy and middle-class Americans. The headline-grabbing move was that the corporate tax rate will be lowered from 35% to 21% and will be implemented next year, instead of being delayed until 2019.
Republicans also repealed the 20% corporate alternative minimum tax, while any income brought back from overseas will be taxed 8% to 15.5%, instead of the current 35%. Immediate offset of spending on short lived capital equipment is expected to further save U.S. companies around $32.5 billion in 2018, as per Congress’s joint committee on taxation.
A reading on consumer confidence dropped to 122.1 this month, down from an earlier reading of 128.6. For this year, however, confidence remained at its highest level since 2000. Meanwhile, pending-home sales increased 0.2% in November (read more: U.S. New Home Sales Surge in November: Housing Stocks in Focus).
Capital One Financial (COF - Free Report) is reducing its share repurchase authorization owing to new tax law. (Read More)
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Stock Market News For Dec 28, 2017
U.S. stocks registered modest gains on Wednesday, as advances in major tech players offset declines in energy stocks. The technology sector snapped a five straight session losing streak to end in the green, buoyed by gains in Facebook, Inc. and Microsoft Corporation (MSFT - Free Report) . But, the broader market largely continued its winning run after the Republicans passed the U.S. tax reform bill for the first time in 30 years.
Overall, investors found few catalysts in one of the lowest-volume weeks of the year. Trading volumes in the U.S., in fact, remained at its lowest level in three years in 2017. Only on an average 6.43 billion shares were traded each day this year. Last year, about 7.22 billion shares were traded each day.
How the Major Bourses Fared?
The Dow Jones Industrial Average (DJIA) increased 28.09 points, or 0.1%, to 24,774.30. The S&P 500 Index (INX) went up 2.12 points, or 0.1%, to 2,682.62. The tech-laden Nasdaq Composite Index (IXIC) closed at 6,939.34, gaining less than 0.1%. A total of 4.36 billion shares were traded on Wednesday, lower than the last 20-session average of 6.79 billion shares. Advancers outnumbered decliners on the NYSE by a 1.23-to-1 ratio. On Nasdaq, a 1.04-to-1 ratio favored advancing issues.
What’s Driving the Broader Equity Market?
Jubilant Republicans delivered a tax bill to President Trump before Christmas, as promised. The Republican tax plan got the final approval by the House that gave Corporate America a massive permanent tax break.
Republicans successfully countered opposition from Democrats to pass the bill that will slash corporate taxes and provide temporary tax relief to both wealthy and middle-class Americans. The headline-grabbing move was that the corporate tax rate will be lowered from 35% to 21% and will be implemented next year, instead of being delayed until 2019.
Republicans also repealed the 20% corporate alternative minimum tax, while any income brought back from overseas will be taxed 8% to 15.5%, instead of the current 35%. Immediate offset of spending on short lived capital equipment is expected to further save U.S. companies around $32.5 billion in 2018, as per Congress’s joint committee on taxation.
Miners, energy, retailers, tech, banks and pharma are expected to enjoy the biggest gains from the tax package (read more: GOP Passes Landmark Tax Bill: Best & Worst for Stocks).
Latest Economic Reports
A reading on consumer confidence dropped to 122.1 this month, down from an earlier reading of 128.6. For this year, however, confidence remained at its highest level since 2000. Meanwhile, pending-home sales increased 0.2% in November (read more: U.S. New Home Sales Surge in November: Housing Stocks in Focus).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Made Headlines
Why Capital One Cut Share Buyback on the New Tax Law
Capital One Financial (COF - Free Report) is reducing its share repurchase authorization owing to new tax law. (Read More)
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>