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What you need to know in markets on Thursday
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Loading...Tech earnings will dominate the calendar on Thursday. Perhaps even overwhelm.
After the market close, investors are bracing for results from Amazon(AMZN), Google parent company Alphabet(GOOGL), Microsoft(MSFT), Western Digital(WDC), and Expedia(EXPE). Starbucks(SBUX) — which is kind of a tech company — will also report earnings after the bell.
Before the bell on Thursday, earnings will be highlighted by Ford(F).
On the economic data side, we’ll get durable goods orders for March as well as the weekly report on initial jobless claims. The week’s big even comes on Friday, when we get the first estimate of GDP growth in the first quarter.
On Wednesday, markets were little-changed after a big two-day rally to start the week as the much-anticipated tax announcement from the Trump administration was a dud.
“Now, I have to tell you, it’s an unbelievably complex subject,” President Donald Trump said in February. “Nobody knew health care could be so complicated.”
Sub-in tax reform, and we can basically run this Trump quote back.
On Wednesday, Treasury Secretary Steven Mnuchin and chief economic advisor Gary Cohn unveiled Trump’s new tax plan. The one-page outline circulated by the administration, however, largely restates plans that were already on the White House’s website and that already were seen as unlikely to come to pass.
The corporate tax rate is proposed to fall to 15% from 35%. Personal income taxes will now fall into three buckets, 10%, 25%, and 35%. Corporate taxes will move to a territorial system. Missing from the plan was the controversial border adjustment tax — which the president had called “too complicated” — but which was a key part of getting the plan to be deficit neutral.
Initially tax reform was targeted for passage through Congress by August. Now the timeline is year-end. But the more we hear broad outlines on plans and the less we hear specifics, the more likely it is this timeline gets pushed further out into the future.
“The Trump tax plan received an inordinate amount of fanfare but the outcome was pretty ho-hum,” writes RBC Capital Markets’ chief US economist Tom Porcelli.
The real market-moving news on Wednesday was a report from Politico that said the administration was considering an executive order to pull the U.S. from NAFTA. The Mexican peso slipped and shares of Kansas City Southern, one of the most exposed U.S. companies to free-trade relations with Mexico, fell almost 4% on Wednesday
Source: Bloomberg
Jr Trader Petar Milanov
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