Stocks surge as investors cheer corporate tax cut

Stocks surged Monday after Wall Street got its early Christmas present -- a bill that would cut taxes for many busine...

Posted: Dec 18, 2017 4:11 PM
Updated: Dec 18, 2017 4:11 PM

Stocks surged Monday after Wall Street got its early Christmas present -- a bill that would cut taxes for many businesses and that could be signed by President Trump before the holiday.

The Dow climbed more than 200 points in early trading, or about 1%, and was above 24,850, a record high.

The S&P 500 and Nasdaq also rose by about 1% and hit all-time highs. All three indexes closed at records on Friday in anticipation of the release of the tax bill by Republican congressional leaders.

The biggest boost for Corporate America would be the slashing of the corporate tax rate from 35% to 21%. That could boost profits significantly for big banks, according to a report from Goldman Sachs.

Financial stocks, unsurprisingly, were among the biggest gainers Monday. JPMorgan Chase, Citigroup, Bank of America and Wells Fargo each rose more than 1% shortly after the opening bell.

Businesses would also be charged a one-time low tax rate on foreign profits of 15%. That's an incentive for multinational firms to bring back cash sitting in lower-tax countries.

The hope is that this cash will be used to boost dividends and stock buybacks, build new plants in the United States and hire more workers.

The House is expected to vote on the tax bill Tuesday, and the Senate is expected to vote either Tuesday after the House or Wednesday. The bill is expected to pass on party lines.

Related: Here's what is in the GOP's final tax plan

Stocks have been rallying all year because of strong economic growth and hopes that President Trump would roll back regulations to help stimulate the economy.

Even though Trump's effort to repeal Obamacare failed in Congress, many investors had remained optimistic that Trump would strike a deal with lawmakers on taxes.

And that's one of the main reasons that the Dow is inching closer to the 25,000 milestone, after already having passed the 20,000, 21,000, 22,000, 23,000 and 24,000 levels this year.

Related: No bears here! Market on the verge of making history

The Dow is up more than 25% in 2017, led by blue chips Boeing, Caterpillar, Apple, Visa, McDonald's and Walmart. All those stocks have soared at least 40%.

And the Nasdaq, home to hot tech stocks like Facebook, Amazon, Netflix and Google owner Alphabet, is up 30% and not far from 7,000.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 67857

Reported Deaths: 2975
CountyConfirmedDeaths
Marion14710719
Lake7037269
Elkhart458276
Allen3611157
St. Joseph311479
Hamilton2489104
Cass17509
Hendricks1742105
Vanderburgh170012
Johnson1648118
Porter117439
Tippecanoe109411
Clark107545
Madison84265
LaPorte82929
Kosciusko81612
Howard80464
Marshall74222
Bartholomew73847
Floyd68444
Monroe68430
Noble63528
Delaware63352
Boone63246
Dubois62412
Hancock61637
Jackson5514
LaGrange54210
Shelby50926
Warrick50230
Grant49629
Vigo46810
Dearborn46128
Morgan41832
Henry36118
Clinton3523
White34510
Montgomery33821
Lawrence32627
Wayne3159
Decatur31332
Harrison28922
Miami2582
Scott24710
Daviess24319
Greene23834
DeKalb2214
Putnam2218
Jennings20712
Franklin20510
Jasper2032
Steuben1993
Gibson1984
Ripley1887
Perry17112
Starke1647
Orange16324
Wabash1583
Posey1570
Fayette1547
Jefferson1492
Whitley1486
Fulton1442
Carroll1422
Wells1312
Knox1290
Huntington1183
Washington1151
Spencer1133
Newton10910
Tipton1065
Randolph1024
Clay975
Jay820
Adams812
Rush794
Owen781
Sullivan751
Pulaski711
Brown701
Fountain632
Benton600
Blackford532
Ohio504
Parke451
Pike450
Switzerland430
Crawford420
Martin420
Vermillion380
Union320
Warren191
Unassigned0200

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 93031

Reported Deaths: 3529
CountyConfirmedDeaths
Franklin17107514
Cuyahoga12646477
Hamilton9110247
Lucas4852318
Montgomery402477
Summit3248217
Marion287544
Butler268359
Mahoning2393253
Pickaway235242
Stark1679132
Lorain162076
Warren160035
Columbiana157060
Trumbull1421103
Fairfield123825
Delaware119418
Licking111642
Clark107613
Lake103435
Wood91058
Clermont83510
Medina83133
Miami76837
Tuscarawas74613
Portage71160
Allen64642
Greene61911
Belmont58926
Ashtabula53845
Richland53610
Geauga52843
Mercer52213
Erie51627
Wayne49258
Ross3874
Huron3714
Ottawa35225
Athens3441
Madison32910
Sandusky32917
Holmes3206
Darke31627
Hancock3152
Lawrence2160
Union2141
Auglaize2135
Jefferson2043
Washington19722
Putnam19317
Coshocton1856
Scioto1851
Muskingum1781
Knox1652
Crawford1645
Preble1642
Morrow1582
Shelby1574
Seneca1533
Hardin15012
Clinton1466
Fulton1391
Ashland1303
Defiance1294
Highland1271
Williams1233
Logan1201
Wyandot1195
Brown1121
Guernsey1106
Hocking1089
Carroll1075
Henry1061
Champaign1051
Perry1052
Fayette940
Monroe9018
Van Wert681
Pike660
Jackson650
Paulding590
Gallia571
Adams532
Vinton302
Meigs240
Morgan200
Harrison191
Noble160
Unassigned00
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