Stocks closed little changed on Wednesday, during which we also saw the unveiling of the White House’s new tax plan.
The Dow and the S&P 500 dipped into the red, while the Nasdaq just barely stayed in the green.
First up, the scoreboard:
- Dow: 20,986.97, -9.15, (-0.04%)
- S&P 500: 2,388.06, -0.80, (-0.2%)
- Nasdaq: 6,024.14, -1.67, (-0.02%)
- US 10-year yield: 2.313%, -0.016
- WTI Crude oil: $US49.39, -0.17, -0.34%
1. The Trump administration has rolled out a tax plan that proposed to slash corporate taxes, tweak personal tax rates, and eliminate most deductions used by wealthier Americans. While the plan contains broad outlines rather than firm legislative text, Mnuchin and Cohn said the plan would include “the biggest tax cut” in US history, echoing statements made by Trump.
2. But the plan is missing a number of important details. The plan does not note the income levels associated with each bracket. Another key missing detail pertains to the repatriation tax. “The best that can be said is that the president is laying out his opening bid in what could prove to be a very long and fraught negotiation,” Paul Ashworth, chief US economist at Capital Economics, said in a note.
3. As for Trump’s taxes, Mnuchin said the president “has no intentions” to release his returns. “The president has released plenty of information,” the Treasury Secretary said. “And, I think, has given more financial disclosure than I think anybody else. I think the American population has plenty of information on his taxes.”
4. Meanwhile over in healthcare, the group of conservatives who killed the original version of “Trumpcare” is now on board. The House Freedom Caucus said the recently added, so-called MacArthur amendment to the American Health Care Act satisfied the group’s conditions for supporting the bill.
5. The Mexican peso got smashed following reports the White House is getting ready to pull out of NAFTA. The peso was down by about 2% around noon ET after Politico reported that the Trump administration was considering an executive order on withdrawing the US from the North American Free Trade Agreement.