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:

Comments

Endgame Napoleon Joe Davola Fri, 12/15/2017 - 15:56 Permalink

Yes, it does. The max is already $6,444. Child tax credits for single moms staying below the earned-income limit for welfare, for part-time-worker moms with spousal income and for immigrant households with male breadwinners whose traceable earned income stays within the limits for welfare, will soon spend child tax credits that exceed the per capita [yearly] income of individuals in these states and many others:

$18,093 ~ Kentucky

https://en.m.wikipedia.org/wiki/List_of_Kentucky_locations_by_per_capit…

$19,393 ~ Tennessee

https://en.m.wikipedia.org/wiki/List_of_Tennessee_locations_by_per_capi…

$18,189 ~ Alabama

https://en.m.wikipedia.org/wiki/List_of_Alabama_locations_by_per_capita…

South Carolina ~ $18,795

https://en.m.wikipedia.org/wiki/List_of_South_Carolina_locations_by_per…

Mississippi ~ $20,670

https://en.m.wikipedia.org/wiki/List_of_Mississippi_locations_by_per_ca…

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-cr…

Child tax credits, in addition to free food and free rent from welfare programs, drive down wages for citizens with earned-only income, and the moms often spend the extra money on tattoos and trips to Florida with boyfriends. Maybe, the tourist money from child tax credits is why Rubio supports it.

No, it is because rich employers [rich campaign donors] like a welfare-fueled workforce that is incentivized by welfare and tax welfare to accept low pay.

It is also because they traded expanded child tax credits for estate tax cuts for the heirs of rich parents and marginal-rate tax cuts for dual, high-earner couples who take two jobs out of the economy that could support four households, creating no jobs.

Any jobs created by this tax cut will mostly go to welfare-buttressed immigrants, getting child tax credits of up to $6,444 and moms, getting the same. Many [diverse] workplaces are staffed almost entirely by these groups.

In reply to by Joe Davola

spastic_colon Bryan Fri, 12/15/2017 - 10:45 Permalink

its no wonder with statements like this...."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...."which we all know will be preceded by more BS that its not a done deal and then suddenly it is a done deal right as markets open to keep pushing ANY decision until year end; this fraud is sickening while the politicians rake in trading profits; goldman is in full control and has index targets for year end bonuses; we all know any tax "savings" is only to ensure the continuation of buybacks and fraudulant earnings.

In reply to by Bryan

LawsofPhysics Fri, 12/15/2017 - 10:34 Permalink

Yes, yes, everything is "awesome-er"!!!"All time highs" in everything from equities to employment!!!!...and yet, the fuckers in banking and finance still need access to TRILLIONS at 1.5% interest at the expense of savers, peasants, and small business owners who must borrow at rates 200-400% higher!!!LMFAO!!!!!"Full Faith and Credit"same as it ever was...

Bryan LawsofPhysics Fri, 12/15/2017 - 10:43 Permalink

Hi LoP.  I just wondered what you mean by "Full Faith and Credit".  Do you mean that people are losing faith in the US Dollar as a reserve currency?  And what do you mean by "same as it ever was...".  I don't mean to ask stupid questions, but you end almost every post with those words and I'm not sure what point you are trying to drive home.  Honest question.

In reply to by LawsofPhysics

LawsofPhysics Bryan Fri, 12/15/2017 - 10:51 Permalink

With respect to currency, yes, the phrase simply means that we live in a 100% fiat currency world. Once faith is lost ALL fiat currencies DIE. Possession, and maintaining possession of real assets and productive capital will be the only "law" at that point.With respect to the constitution and unifying multiple states, many with different resources to offer, one need to remember this;http://www.heritage.org/constitution/#!/articles/4/essays/121/full-fait… and paste the entire address, the link does not work.

In reply to by Bryan

Al Huxley Fri, 12/15/2017 - 10:40 Permalink

You know, eventually the market's going to stall out as bitcoin and the cryptos suck up all the 'investment' dollars.  Use your imagination, as Nick Colas advises us!  

Serfs Up Fri, 12/15/2017 - 10:44 Permalink

What's this?  The 23rd tax rally?  How many fucking rallies can you get out of one dumb-ass bill that's going to soak the middle class and ruin the fiscal future?

newmacroman Fri, 12/15/2017 - 10:58 Permalink

The only way this stock distrubution from strong to weak hands could continue was with this tax bill canard.I'd say distribution is complete and it ain't worth waiting for a few hunnert points to get to Dow 25k.I wouldn't even take a chance on selling in early Jan to put off gains another year.Timmmmbbbber is the new fat lady song

Aw Yeah Fri, 12/15/2017 - 11:07 Permalink

Can you imagine the implications for any critter who votes against the swamp? There is no chance the tax bill doesn't pass, the swamp's survival depends on it, but until then they will juice this "will it? won't it?" charade for all it's worth.

Endgame Napoleon Aw Yeah Fri, 12/15/2017 - 16:08 Permalink

The Swamp will be worse off for it, more mistrusted and with lower turnout in elections. More jobs and more child tax credits for immigrants is not what we voted for. I, personally, did not vote for more tax welfare for the crony mom citizens who dominate just as many jobs, where they back watch in absenteeism gangs.

In reply to by Aw Yeah

PontifexMaximus Fri, 12/15/2017 - 11:50 Permalink

look at the markets, the bill already passed, they do not even have to vote. in case it would NOT pass (what will not happen) the markets would even move higher. business as usual, nothing to see here. 

artvandalai Fri, 12/15/2017 - 14:30 Permalink

Doesn't matter what happens or what doesn't happen. Nucler bombs all over the west coast, internet crashing, amazon drivers going on strike, Wal mart shutting all stores, SPX earnings going immediately negative, Cramer forgetting to take his ritalin, and ABBA getting back together all could happen in the same day and the market would go up. It's beyond stupid. 

Seasmoke Fri, 12/15/2017 - 16:00 Permalink

Pass it on December 24. Who gives a Fuck. No one gave a Fuck in 1913. And no one gives a Fuck now. It's never going down again. Dow 36,000. 

MuffDiver69 Fri, 12/15/2017 - 16:30 Permalink

I have to agree with little bob..If anything it does lower business taxes for first time since I was in college. The reconciliation really stopped this from being much better, but when the democrats decide “resistance” is a governing philosophy, this is what happens..The democrats did finally get the tax hike on their own high earners though and that’s a beautiful thing even if it hits me a little..Pound sand libs..