Here is what you need to know.
The largest tax overhaul since 1986 awaits Trump’s signature. The Tax Cuts and Jobs Act, which reduces the corporate tax rate to 21% from 35% and lowers the tax bill of most Americans, cleared both chambers of Congress on Wednesday and awaits President Donald Trump’s signature.
Companies are rushing to announce special bonuses and pay hikes after the GOP tax plan. AT&T, Boeing, Wells Fargo, and Comcast are among the companies that have announced plans to pay employees a special bonus, increase their minimum wage, or announce capital expenditures following the passage of the Tax Cuts and Jobs Act.
The Bank of Japan holds. Japan’s central bank voted 8 to 1 in favour of retaining its quantitative and qualitative monetary easing with yield curve control program and keeping interest rates unchanged at -0.1% while pledging to buy Japanese government bonds so the 10-year JGB yields will remain about 0%.
Global IPO activity hits a post-financial-crisis high. Ernst and Young’s Global IPO Report found that 1,624 companies had gone public worldwide in 2017, making for a 49% increase versus a year ago and the highest total since 2007.
Crypto volumes are about the same the New York Stock Exchange. Global volume in cryptocurrency markets has passed $US50 billion a day, close to the average turnover on the New York Stock Exchange.
Chipotle’s latest health scare caught traders off-guard. Chipotle’s stock dropped Wednesday amid reports that another one of its stores could be tied to an illness outbreak, and traders were woefully unprepared as downside hedges sat at their lowest level in a decade.
Apple admits to slowing down older iPhones. “Our goal is to deliver the best experience for customers, which includes overall performance and prolonging the life of their devices,” a company representative told Business Insider’s Kif Leswing. “Lithium-ion batteries become less capable of supplying peak current demands when in cold conditions, have a low battery charge or as they age over time, which can result in the device unexpectedly shutting down to protect its electronic components.”
Stock markets around the world are mixed. Australia’s ASX (-0.39%) lagged overnight, and Britain’s FTSE (+0.26%) is out front in Europe. The S&P 500 is set to open higher by 0.16% near 2,684.
Nike reports after the bell. The sneaker giant is expected to earn $US0.40 a share on revenue of $US8.39 billion, according to analysts surveyed by Bloomberg.
US economic data is heavy. GDP, core PCE, initial claims, and Philly Fed will all be released at 8:30 a.m. ET before FHFA home prices cross the wires at 9 a.m. ET. The US 10-year yield is down 1 basis point at 2.48%.