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The Dow Jones today is set to rise as Republicans get closer to passing the tax reform bill.
Dow futures are up 100 points this morning as markets cheer on the passage of the new tax reform bill in the Senate. Read this to find out more reasons why the S&P 500 will pass 3,000 in 2018…
Here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
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Now here's a closer look at today's most important market events and stocks, plus Wednesday's economic calendar.
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The Five Top Stock Market Stories for Wednesday
- The tax reform bill passed through the U.S. Senate on Tuesday evening by a 51-48 vote on party lines. Sen. John McCain (R-AZ) was the only member of the body who did not vote, as he remains at home recovering from cancer. The U.S. House of Representatives is expected to pass the bill again on Wednesday.
- Gold prices pushed higher this morning despite a stronger U.S. dollar. The greenback has gained in value thanks to optimism over the U.S. tax bill and expectations of interest rate hikes heading into 2018. With gold trading around $1,265.00 per ounce, many traders are starting to pile into the precious metal. The New Year faces a slate of geopolitical tensions around the globe that could burst into crisis at any time. Here's why we're so confident gold will rally in 2018…
- Ride-sharing giant Uber is in the spotlight again, and this news isn't good. The top court in Europe has declared that Uber is a transportation company and should thus be regulated accordingly. This is a major setback for an organization that has billed itself as a technology firm and not a taxi operator. This will likely increase regulatory oversight dramatically. The question now is how this ruling will impact any Uber IPO in the future.
- Crude oil prices added gains Wednesday morning due to ongoing supply concerns in the North Sea (an oil-producing region north of the United Kingdom). A shutdown of a major pipeline in the North Sea complemented expectations that U.S. crude supplies fell last week. The Energy Information Administration will report weekly inventory levels today. The WTI crude oil price today added 0.3%. Brent crude gained 1.1%.
- The price of Bitcoin tanked Tuesday night after cryptocurrency exchanges added rival Bitcoin Cash to its platform. Bitcoin fell as much as 12% in nearly an hour. Meanwhile, Litecoin founder Charlie Lee "sold and donated" all of his tokens in recent days. The decision came after Lee argued that he had a "conflict of interest" in holding his own cryptocurrency. Lee founded Litecoin in 2011, but some critics have accused him of discussing the price in order to personally benefit from the gains. For more on what is happening with Bitcoin, Bitcoin Cash, and Litecoin, read our daily insight on cryptocurrencies, right here.
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- Shares of BlackBerry Ltd. (Nasdaq: BB) popped more than 7% after the technology company surprised Wall Street by topping profit expectations for the third quarter. The firm reported earnings per share (EPS) of $0.03, while Wall Street forecasted the Canadian firm would break even. Although the firm still reported a 25% decline in quarterly revenue, its $226 million figure still topped analysts' consensus call for $215.4 million. The firm reported a double-digit jump in enterprise software and services sales thanks to 3,000 orders during the quarter.
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- Shares of FedEx Corp. (NYSE: FDX) gained nearly 2% in pre-market hours after the shipping giant topped Wall Street earnings after the bell Tuesday. The firm reported EPS of $3.18 on top of $16.313 billion in revenue. Analysts expected EPS of $2.87 on $15.67 billion. The firm said that the daily average shipping volume increased by 7% compared to the same quarter in 2016.
- Shares of Stitch Fix Inc. (Nasdaq: SFIX) plunged almost 14% after the apparel company reported its first earnings results since going public last month. The firm said that even though its customer base is increasing, it saw its bottom line falter as it expands into new lines and sizes of clothing. The company's CEO said her firm will not use discounts to attract new customers and capture market share.
- Look for additional earnings reports from General Mills Inc. (NYSE: GIS), Bed Bath & Beyond Inc. (Nasdaq: BBBY), Winnebago Industries Inc. (NYSE: WGO), and Actuant Corp. (NYSE: ATU).
Wednesday's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- Existing Home Sales at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.