Market Alert - To the Close

A pretty decent rebound from midday has SPY back to the midmorning bounce point. That still leaves it and the other indices lower, but a solid enough rebound is in progress for all . . . but SOX.

SP500 -9.33; -0.35%
NASDAQ -38.52, -0.57%, Almost 65 points off the low
DJ30 -99.05, -0.42%
SP400 -0.57%
RUTX -0.51%
SOX -1.99%

The Senate tax bill is a thing of wonder. Business gets a tax rate cut to 20% -- in a year. You know what they say: a tax rate cut deferred . .

7 brackets, the top reduced a smidge.

Death tax continued but the exemption amount doubled.

IRA's remain, SALT deductions jettisoned.

Standard deduction doubled, child credit raised.

Pass throughs get a deduction -- well that is the 'my parents went to Hawaii and all I got was this t-shirt' part of the bill. Screw the small businesses; reward the big corps and those not paying taxes already.

In short, it is not reform, just tweaking. What a surprise. And from THIS Senate.


The BTD is working, more or less, and it looks to be picking up steam at the end of the session. It needs it; stocks rebounded, but not all that robust. Chip stocks are still very heavy, still struggling.

As for buys, ZUMZ looks interesting; yes, ZUMZ. FB could be good but don't have to rush on more positions on it. Never enough of a dip in AMZN to pick up more. HUBS looks weak and will see if other chips can rebound a bit better into the close.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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