Closer Tax Reform Help Stocks Soar
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after closer tax reform help stocks soar. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:
Wall Street also got set for Jerome Powell’s confirmation hearing to become the next Federal Reserve chair. In prepared remarks, Powell said he “would strive, along with my colleagues, to support the economy’s continued progress toward full recovery.” Powell, who is currently Fed governor, was nominated by President Donald Trump to succeed current Chair Janet Yellen in February.
The S&P 500 (SPY) rallied 0.98% today as closer tax reform help stocks soar. S&P sector advancers led decliners by 9 to 1. Financials (XLF) led advancers with a 2.60% gain followed by industrials (XLI) +1.52%, then both consumer discretionary (XLY) and materials (XLB) gaining 1.11% each. Consumer staples (XLP), energy (XLE), healthcare (XLV), technology (XLK) and utilities (XLU) advanced less than 1%. The only sector falling on this bullish day was real estate (XLRE) dropping by less than 1%.
The Dow Jones index soared 255 points closing at 23,836. The Nasdaq jumped 33 points ending at 6,912.
There were two main focal points from today’s session. First, the Senate Budget Committee approved the Senate’s tax plan today, bringing it closer to a floor vote which is expected by Thursday. Second, stocks were boosted from testimony from Federal Reserve Chair nominee Jerome Powell. He said that current regulations on the financial sector are “tough enough.” He also supported easing regulations on small banks.
Some standouts from a strong rally day included these four blue chip stocks. Berkshire Hathaway (BRK.B) and JP Morgan Chase (JPM) led financials with 2.21% and 3.50% gains respectively. Microsoft (MSFT) and Johnson & Johnson also had strong 1%+ gains.
Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.
S&P 500 Sector Graph
S&P 500 (SPY)
Consumer Discretionary (XLY)
Consumer Staples (XLP)
Real Estate (XLRE)
S&P 500 Sector Heat Map