Here comes Dow 25,000

Stocks soar in Trump's first year

1. Here comes Dow 25,000: Don’t blink — or you’ll miss another market milestone.

Next up: Dow 25,000. the item could happen any day currently, especially if Congress passes the massive package of tax cuts in which has seriously fired up Wall Street.

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Whenever the Dow tops 25,000, the item’ll be an incredible feat. Not just because the item’s another milestone in a year of milestones (Dow 20,000; 21,000; 22,000; 23,000; along with also only three weeks ago 24,000), yet because the item shows just how far the stock market has come through the crisis.

Consider in which the Dow crashed to just 6,443 in March 2009 during the Great Recession. the planet’s most famous market barometer has nearly quadrupled through in which crisis low, with most of the gains occurring prior to President Trump’s election.

There’s no question in which Trump’s promises of tax cuts along with also deregulation has lit a fuse under the stock market. yet the market would certainly likely be up a bunch even without Trump’s stimulus agenda.

in which’s because economies are strong, from the United States along with also around the planet. The not bad times mean record-high profits should be able to keep going, even without the windfall in which would certainly come through the tax overhaul in which the GOP can be on the verge of enacting.

No wonder the business community can be euphoric. Confidence among modest businesses, manufacturers, homebuilders along with also consumers can be the strongest in aggregate since the early 1980s, according to a recent report by Bank of America Merrill Lynch. in which optimism can be “consistent with 5-6%” GDP growth, the firm said.

in which’s why BofA can be calling for the S&P 500 to race to 2,863 from the first quarter. in which would certainly be a 7% advance through already elevated levels.

yet could the post-election surge then finally mellow out? BofA can be warning in which early 2018 will likely bring a “Big Top in risk assets” (read: stocks along with also junk bonds), especially if inflation finally rears its ugly head.

“Excess bullishness won’t take long,” BofA concluded.

2. along with also here come the tax votes: House along with also Senate Republicans are on track to deliver a tax reform plan to Trump by Christmas.

GOP leaders agreed on the final text of the bill last week along with also revealed the item to the public on Friday. The House will go first: the item’s likely to vote on Tuesday, along with also the Senate will follow soon after. Then the item will go to the president’s desk.

Related: What’s from the GOP’s final tax plan

The plan, which has been rushing through Congress, has been criticized by some experts — including outgoing Federal Reserve chair Janet Yellen. During her final press conference, Yellen warned last week in which the deficits the bill will bring — about $1.46 trillion over a decade, according to the nonpartisan Joint Committee on Taxation — could make the item harder to fight a future recession.

Related: Janet Yellen: Tax plan’s deficits could make the item harder to fight a recession

The bill drops the corporate tax rate down through 35% to 21%, repeals the corporate alternative minimum tax along with also restructures the way pass-through businesses are taxed.

3. Consumer brands report earnings: Americans are spending. Retail sales rose 0.8% in November, confounding expectations along with also showing in which U.S. shoppers aren’t cutting back This specific holiday season. in which’s not bad news for the consumer brands in which report earnings from the coming week — most of which could use a boost.

Related: News flash! U.S. economy already looks strong

Shares of FedEx (FDX), which plans to report on Tuesday, dipped in October following news in which Amazon (AMZN) may launch its own delivery service. General Mills (GIS), which can be set to share its financials on Wednesday, missed forecasts from the last quarter. along with also North American sales for Nike (NKE), scheduled to announce earnings on Thursday, fell by 3% last quarter compared with 2016.

4. Bitcoin trading kicks off on CME: CME, the derivatives marketplace, kicks off electronic bitcoin futures trading on Sunday, a week after futures trading began on the Chicago Board Options Exchange. Bitcoin jumped soon after trading began on the Cboe. We’ll see if the cryptocurrency streak continues This specific week.

5. Coming This specific week:

Monday — Official trade date for Bitcoin futures on CME

Tuesday — Fedex, Darden (DRI) along with also Carnival (CCL) report earnings

Wednesday — General Mills earnings

Thursday — Nike earnings; Final estimate on 3Q U.S. GDP

Friday — El Gordo lottery in Spain

sy88pgw (brand new York) First published December 17, 2017: 8:00 AM ET

Here comes Dow 25,000

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