STOCKS SKYROCKET AS TAX PLAN PASSES: Here's what you need to know

Joe Ciolli

Nov 17, 2017, 8:02 AM

US stocks soared to their biggest gain in two months as the House passed their version of a plan that would cut taxes for corporations, which many expect to boost the bottom lines for US companies.

The S&P 500 climbed 0.8%, led by consumer staple shares that got a huge boost from Walmart’s earnings report. The Dow Jones Industrial Average increased 0.8%, while the more tech-heavy Nasdaq Composite index surged 1.3%.

First up, the scoreboard:

Dow: 23,454.29, +183.01, (+0.79%)
S&P 500: 2,585.68, +21.06, (+0.82%)
Nasdaq: 6,793.29, +87.08, (+1.30%)
US 10-year yield: 2.36%, +0.03
WTI crude oil: $US55.15, -0.18, -0.33%

1. Walmart beats and raises guidance as online growth explodes. America’s largest brick-and-mortar retailer said US comparable-store sales rose by 2.7% versus a year ago, making for the 13th straight quarter with positive results.

2. Tesla’s sinking stock has made short sellers almost $US1 billion. After nine months of having their bets annihilated by Tesla’s surging stock price, short sellers are finally making some of that money back.

3. There’s a $US300 billion reason why every automaker should be seriously looking into self-driving trucks. With Tesla set to reveal its first all-electric truck on Thursday, Bernstein says that full automation of the trucking industry could save $US300 billion in labour costs.

4. A recount shows billionaire investor Nelson Peltz won the biggest proxy battle in history. He’ll now have a seat on Procter & Gamble’s board after he was initially reported to have lost the vote by a slim margin.

5. Cisco beats analysts’ expectations and finally sees its way out of an 8-quarter revenue decline streak. The company posted a steady $US12.136 billion in revenue for the first quarter of 2018, compared to the quarter before when it saw $US12.133 billion come in.

ADDITIONALLY:

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The Senate tax bill could lead to tax increases on people making $US75,000 or less — while the wealthy get a tax cut

The world’s largest sovereign wealth fund wants to dump oil and gas stocks

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