Stocks closed mixed on Monday, with the Dow hitting a new record, after a whirlwind weekend in which the Senate narrowly passed its Tax Cuts and Jobs Act in the early hours of Saturday morning. The bill proposes to cut the corporate rate to 20% while changing individual tax brackets and significantly undercutting portions of the Affordable Care Act.
The news injected some much-welcomed volatility into markets. Tech stocks took a beating, while other sectors – like finance – soared.
Here’s the scoreboard:
- Dow: 24,290.05 (+0.24%)
- S&P 500: 2,639.44 (-0.11%)
- Nasdaq: 6,775.37 (-1.05%)
- US 10-year: 2.36% (-1.96%)
- Oil: $US57.45 (-1.56%)
- Goldman Sachs’ economic team estimates the tax bill would only slightly boost the US economy next year and in 2019, while beyond that things look negative, the analysts said.
- The bill also encourages companies to bring their cash back to the US through a one-time repatriation clause. Bank of America analysts rounded up the companies with the most cash reserves that could be brought back.
- Finally, the plan has injected volatility into a stock market that had been seeing some of its most muted price swings on record. Tech stocks, on the other hand, took a beating while other sectors soared.
In other news:
CVS is buying Aetna for $US69 billion in a deal that could radically reshape the American healthcare system as we know it. The deal creates a new type of company that combines a health insurer, a retail pharmacy, and a company that negotiates prescription drug prices with drugmakers called a pharmacy benefits manager. It’s the biggest merger to happen in the US in 2017.
The Winklevoss twins became the first confirmed bitcoin billionaires as the cryptocurrency crossed $US11,500 for the first time on record.
CBOE Global Markets, the Chicago-based options and derivatives exchange, announced Monday it will offer trading of its bitcoin futures product on December 11. The exchange, as well its cross-town rival CME Group, both received clearance from the US Commodity Futures Commission last week to launch bitcoin futures, which would allow investors to bet on the future price of the red-hot digital currency.
Broadcom is laying the foundation for a hostile takeover of competing chipmaker Qualcomm.