S&P 500 Reaches Record High After Trump Announces New Tax Plan
The S&P 500 once again breaks records, and its no accident.
Days after President Trumpnnouced his new tax plan, which promises to cut taxes for the middle class as well as simplify the tax code, the S&P 500 is on pace to close at a record high for the second day in a row. The S&P 500 is a financial index that provides a glimpse of how the US stock market is performing.
The S&P 500 and Nasdaq reached new records on Friday, Sept. 29, with the S&P 500 index on track to close at all-time highs for the second day in a row.
The benchmark S&P 500 increased 0.3%, hitting a record intraday high of 2,517.97. The Dow Jones Industrial Average was down 0.09%, and the Nasdaq rose 0.65% to a high of 6,495.
So far this month, the S&P 500 has risen 1.6%, the Dow 2%, and the Nasdaq 0.4%. Wall Street is on track to close out its least volatile month on record. The range between the S&P 500 Index’s day-to-day session highs and session lows has been just 0.39%, which is the smallest average range during September since at least 1970. Gains for the S&P 500 would mark its sixth straight month in the green.
- This Month Is On Track to Be the Least Volatile September on Record
For the quarter, the S&P 500 has climbed around 5%, the Dow 4.8%, and the Nasdaq 4.8%. Stock markets have managed to clock steady gains, and new records, even as tensions between the U.S. and North Korea threatened to spill over into warfare. The second-quarter earnings season, which occurred earlier in the third quarter, was generally positive.
Already, expectations for the third quarter have been tempered after hurricanes battered the southern U.S. and the U.S. territory of Puerto Rico. The effect of Hurricanes Harvey, Irma and Maria will likely put a dent in growth for the July-September quarter. Estimates have third-quarter GDP growth at 2.5%, according to FactSet. An initial estimate will be published on Oct. 27.
Consumer staples stocks took the lead on markets for a second day. Tyson Foods Inc. (TSN – Get Report) was among the best performers after increasing profit guidance thanks to strong performance in beef sales. For its fiscal year, Tyson anticipates adjusted earnings of $5.20 to $5.30 a share, up from $4.95 to $5.05 a share in previous estimates. The company also announced plans to cut around 450 jobs.
Other consumer stocks on the rise included Unilever PLC (UL) , McCormick & Co. (MKC – Get Report) , Coty Inc. (COTY – Get Report) and Hain Celestrial Group Inc. (HAIN – Get Report) .
Personal incomes rose at the expected pace in August, while consumer spending ticked higher. Incomes increased by 0.2% month over month in August, the Bureau of Economic Analysis reported on Friday, roughly in line with estimates. July incomes had risen 0.3%. The savings rate held at 3.6%, while consumer spending increased 0.1%. The personal consumption expenditure index rose by 0.2%. The core rate gained 0.1%, its weakest since November 2015.Business conditions in the Chicago region improved at a faster pace than anticipated in September. The Chicago Business Barometer increased to 65.2 in September from 58.9 in August, the Institute for Supply Management said on Friday. The measure was at its highest level in three months and second-best in more than three years. Demand, backlogs and employment all improved. Order backlogs hit their highest level since July 1988.