Stocks Soar As Senate Budget Committee Advances Republican Tax Bill On Party-Line Vote

Somewhat calming anxiety over the tax reform bill making it out of committee, Senator Ron Johnson confirmed he would vote 'yes'...

Senator Ron Johnson, a Wisconsin Republican, pushed to change the way pass-through businesses would be treated by increasing a proposed 17.4 percent deduction for pass-through business income to at least 20 percent.

 

Johnson would pay for the heftier tax break by eliminating the corporate deduction for state and local taxes.

 

Johnson said he voted to approve the measure "based on the progress" in recent days. “I’m getting commitments we are going to get this fixed,” he said.

And a few minutes later, the budget committee had enough votes to advance the Republican tax bill. Stocks extended their gains, USDJPY spiked and gold dropped...

As Bloomberg reports, the 12-11 party-line vote Tuesday came after Republican leaders addressed objections raised by GOP committee members who threatened to block it. The House passed its own tax-cut measure last month, and Senate Republicans can afford to lose no more than two votes among their ranks to pass the measure without Democratic help.

All those North Korean nuke worries gone...

 

Stocks bounce to record highs...

 

As Gold dumps...

 

That leaves it up to the Senate (and McCain, Corker, and Flake)...The legislation faces an open amendment process on the Senate floor that may spell substantial changes before a final vote that’s expected Thursday.

Comments

NoDebt Tue, 11/28/2017 - 14:58 Permalink

Aaaaaaaaaaaaand... we're green again.  Whew!  That was a close one.Dow is only up 180 points, though.  Imagine how much higher it would be if the Norks hadn't dropped some missiles on Japan earlier today. 

Keltner Channel Surf nmewn Tue, 11/28/2017 - 15:20 Permalink

Yes, another classic “news day” pattern:A) early buyers expecting dovishness and tax plan passage get in early, crushing shortsB) ‘Unexpected’ bad news (we’d been warned) tests opening stops, crushing late longsC) After the world didn’t end, the same early buyers have no reason not to add to or re-build their positions (perhaps already profited from on a stops tightened as the afternoon wore on, thus increasing the downspike’s severity) and we march up again to precisely just above the day’s high to crush Korean-based shorts, with the ‘tax bill’ credited (nope, we were there long before the vote, it was Powell) before ‘last-hour’ algos begin their daily 'will-they-or-won’t-they’ VWAP vs. late surge teaseD) Though confounding, this is completely ‘organic’, based on order flow, auto algo activity and stop placement, and has been occurring on big news days for decadesTomorrow, Yellen’s swan song, cant wait …

In reply to by nmewn

LawsofPhysics Tue, 11/28/2017 - 15:05 Permalink

Remind me again why anyone pays any taxes when The Fed has in fact monetized EVERYTHING with "money" they created out of thin fucking air with no real work, no real risk, and NO REAL COLLATERAL?!?!?For some reason I think this whole "tax circus" is but a distraction...see the real problem yet fuckers?"Full Faith and Credit"

Seasmoke Tue, 11/28/2017 - 15:16 Permalink

Every 2 months or so we have the most fucked up day of markets ever seen in history. Today is the newest and greatest of most fucked up days ever witnessed. Give yourselves a pat on the back !!!

CatInTheHat Tue, 11/28/2017 - 15:36 Permalink

This is the most RUTHLESS bill I've ever seen come out of this Congress  full of PSYCHOPATHS. WHY the FUCK are we even having a debate to give corporations a 15% DECREASE, while making those who make below $30,000 PAY FOR IT. Look at the CBO analysis and get ready to shit yourself if you're in this bracket.Should make Trumpsters very happy to see Medicare, Medicaid, SNAp and housing (in the midst of a homeless crisis across the country) GUTTED.I hope a nuke war starts at this point. This country needs a fucking do over in MORALITY...

Yen Cross Tue, 11/28/2017 - 15:41 Permalink

   Interesting that the eur/jpy doesn't seem to be playing along.  The eur/usd is getting hammered, on a "risk on" day, for U.S. equity markets. Should be interesting to see how the euro,{darling of carry traders} does in the Asian markets. The $usd has been getting hammered, for any and every excuse under the [Rothschild cartel].  Once earlier U.S. macro gets digested, I suspect reality will set in, Re; no moar FREE $'s.  

razorthin Tue, 11/28/2017 - 15:55 Permalink

Blow-off fuel.  Also, spending from 2/3 of NY State citizens (even ordinary ones like me, mind you) is about to grind a halt to cover the increased tax burden.

overmedicatedu… Tue, 11/28/2017 - 16:33 Permalink

most "tax is hurting the little people" posters.. forget..20% of earners pay 70% of taxes..I think these posters fall well down the income scale and never pay fed tax now..irs is used to plow money back to the bottom earners..income redistrobution is just fine, thank yu..what part of 20 trillion plus debt do you not understand?..lets print that super coin worth trillions and pay this debt off..taxes can't cover the interest soon much less the debt.