Stocks Surge To All Time High As Corker Unexpectedly Joins Rubio In Supporting GOP Tax Bill

Update: Just hours after Rubio announced that he would support the reconciled Republican tax plan, Tennessee Sen. Bob Corker - the only Republican who voted against the Senate tax bill - has said he, too, will support the legislation.

By supporting the bill, Corker - who has publicly feuded with President Trump, famously comparing the West Wing to an "adult daycare center" - has surprised many observers. A self-styled "deficit hawk", Corker said in a statement that "while the bill is far from perfect," he didn't want to miss out on the "once-in-a-generation opportunity to make US businesses domestically more productive and internationally more competitive is one we shouldnot miss."

Read his full statement below:

 

 

With Corker and Rubio now firmly in the 'yes' column (though of course there's still time for them to walk back there support), there are still three Republican senators who are still undecided...

 

That's still more than enough votes to kill the bill in the Senate. As things stand now, VP Mike Pence could still be called in to break a tie and send the bill to the president's desk. Indeed, the Senate was the last major obstacle for the bill, which is widely expected to pass the Trump-friendly House.

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Update: minutes after the trial balloon was floated, the initial Fox report has been denied:

  • SEN. RUBIO STILL A `NO' ON TAX BILL, HASN'T SEEN TEXT YET: AIDE

Yet somehow, despite sliding on yesterday's Rubio news, stocks have refused to react to today's rejection, and are now trading at all time highs clearly certain that nothing can derail tax reform now.

Earlier GOP Rep. Kristi Noem said that the child tax credit demanded by Rubio, is being made refundable to $1,400 per child, Bloomberg reports. "We’re in a good spot," she say. As a reminder, yesterday Marco Rubio said the credit had to expand from $1,100 to win his vote for the overall tax legislation.

For now, however, Rubio spokeswoman said he hasn’t yet seen bill text: “We have not seen bill text, and until we see if the percentage of the refundable credit is significantly higher, then our position remains the same,” Rubio spokeswoman Olivia Perez-Cubas said in email Friday morning.

GOP Sen. Mike Lee’s office also says he hasn’t seen text; Lee has voiced similar concerns about child tax credit as Rubio.

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Earlier

And just like that, stocks priced in tax reform for the nth consecutive day, because one day after speculation that Marco Rubio would be a hurdle to the passage of tax reform, which pushed stocks modestly lower, moments ago Fox - or is that Disney - reported that Marcio Rubio is a "yes" on the tax bill, sending risk assets soaring in the latest "buy-everything" euphoria.

Rubio's turn comes shortly after Speaker Paul Ryan told the media that the Senate and House are both planning to hold votes on the bill by end-of-day Wednsday with the first vote likely coming in the House Tuesday and the Senate following either Tuesday or Wednesday. Separately, Senator Brady announced that the tax measure is now done, and should win every senator's support.

  • BRADY: TAX MEASURE DONE, SHOULD WIN EVERY SENATOR'S SUPPORT

The result in markets was fast and furious, with the S&P, dollar, yields and the USDJPY all surging following the report.

And putting yesterday's and today's moves in context: