Stocks Sink As Tax-Cut Hopes Fade, Junk Bonds Hit 8-Month Lows

Tyler Durden's picture

Sell the news? Stocks are slumping (following Japan's overnight volatility) as traders await tax-cut legislation from the House Ways and Means Committee (and The Senate will also release its own version).

High-Tax companies are underperforming...

 

And Junk bonds just hit the lowest since March...


 

Whether this selling due to disappointment in what is expected to be in the bill... or an expectation that it will not pass anyway - is unclear.

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Kido's picture

shhhh... dips just starting to get bought, check back in EOD

ejmoosa's picture

Primaries are in May in Georgia.  Incumbents hope to survive their primary challenges before acting.

 

The system is rigged so that there is no true accountability.

pods's picture

They were bitching on the radio this morning about how the tax cuts will harm teachers who can now only deduct $250 of school supplies on their taxes.

This is how it happens. A bill is put forth and then all the people affected piss and moan until everything is removed.

If teachers are spending so damn much, why do they still send out "wish lists" that have a hundred bucks of stuff that each student is supposed to buy?  I probably spend 100 bucks a year on shit that the fucking school should provide. Nope, they have no $$ for that stuff. But, they all have laptops and iPads and digital projectors in each class. Then they bitch about where the $$ goes.  What a racket.

pods

LawsofPhysics's picture

Well, one thing is for sure, your feudal overlords do not want an educated populace that is capable of critical thinking.

ejmoosa's picture

And look at what we are paying in school property taxes.  Or Esplost taxes?  

With low interest rates and higher standard deductions, you have to wonder how many no longer even itemize their deductions.

And then to add to it:

http://www.myajc.com/news/state--regional-govt--politics/official-georgi...

 

We've no idea just how much that education for kids cost five years ago in realitly.  And not a clue as to what it costs today.

mily's picture

ZH bottom (  Y  ) as usual

 

LawsofPhysics's picture

Green by close.The pension math demands it!

"Full Faith and Credit"

Juggernaut x2's picture

It's a Festivus miracle!

NoWayJose's picture

I have to keep saying to myself to NOT BTFD this time.

Vlad the Inhaler's picture

The bill sucks, will raise taxes on the bottom 40% with promises of trickle down you know what.

gatorengineer's picture

From what I can see the bill is a gift to the bottom 50 percent.  From 51 percent to 99 percent grab your ankles....

1) Deleting AMT and Estate a gift to the upside

2) Maintaining (un)earned income credit a gift to the bottom

3) SALT limit fucks everyone in between....

I am Jobe's picture

Winning and being Number 1 is hard

 

MAGA

 

HC Fail

Tax Reform Fail

Opiiods Death Winning

Sexual Harrassment- Winning

Foreign Policy - Fail

Job Creation -Fail

Blaming everyone else- Priceless. 

Signed- Murikan Voters 

redmudhooch's picture

Want to see what our "leaders" are working hard on? For you, the Americans that elect them? Affordable Healthcare? Tax Cut? Mass Immigration, Jobs, higher wages? 

Nah, they're too busy kissing Israels ass to give a fuck about you. Two Key words here: "Unanimously Passed"

Israel-dominated U.S. Congress passes four more anti-Iran bills

https://israelpalestinenews.org/israel-dominated-u-s-congress-passes-fou...

The House passed four bills today and Wednesday taking aim at Iran’s ballistic missile program and its support for Hezbollah, the Lebanese Shiite paramilitary group fighting alongside Iranian forces on behalf of the Bashar al-Assad regime in Syria. In addition, Iran hawks in Congress continue to press the Donald Trump administration to ban US aircraft sales to Iran and designate the Islamic Revolutionary Guard Corps (IRGC) as a foreign terrorist organization.

The House also unanimously passed legislation from Rep. Mike Gallagher, R-Wis., to impose overlapping sanctions on foreign states and individuals for providing support to Hezbollah.

They’re giving the money to Hezbollah to kill individuals and fund terrorism around the world,” House Majority Leader Kevin McCarthy, R-Calif.

A resolution offered by Rep. Ted Deutch, R-Fla., to urge the European Union to designate the political wing of Hezbollah as a terrorist organization passed the House unanimously. 

House Homeland Security Committee Chairman Michael McCaul, R-Texas, continues to push for adoption of his bill urging the State Department to designate the IRGC as a foreign terrorist organization. Sen. Ted Cruz, R-Texas, has a companion bill in the Senate.

Juggernaut x2's picture

AIPAC owns these MFers- every last one of them.

gatorengineer's picture

Same as it always was except the top .1 percent is now 99 percent jooo.

Akdov Telmig's picture

The stocks are sinking moar probably because of a short term profit taking because of the earnings season end, the long term bullish trend is still in full force with very low unemployment, high consumption and big profits from the companies.

idontcare's picture

Just to let everyone know - Etrade & Fidelity were attacked at 10am EST.

Kido's picture

PPT took over their trading desks

LawsofPhysics's picture

..are they adding more cash to our accounts?

Sounds good to me!

LOL!

"Full Faith and Credit"

small axe's picture

As usual, casualties have been limited to low level customers; top management will be issuing their standard disclaimer shortly.

idontcare's picture

BTW, not only ET & Fid.  Scottrade, HSBC, BOA don't ping either.  Trying more.  Will add as find out.   Looks like across the board interruption and not a blip on Bloomberg.  Chase still up LOL.

1023a Oh well.  Chase down now.  

Panic Mode's picture

Politicians ALWAYS have already made their decision in the early days but they will NEVER reveal it. Otherwise it doesn't show that they are considering hard and they don't get the air time on TV. Who cares if you have shown your real cards in day 1.

mily's picture

As usual oil was used to ramp up SPX, pathetic

Ben A Drill's picture

PPT to the rescue. Just like Japan. Just like always.

medium giraffe's picture

Was this published at the BTFD moment?  Is that you, Mr Gartman?

Sick of Government Lies's picture

Ok PPT got there, you can remove the article.  It's over.  10 point move in RUT2000 in one hour.  What took them so long?

DEMIZEN's picture

all time high by 1pm

idontcare's picture

By 3p since the real buying doesn't kick in until 140p