Stocks hit record over tax cut vote
U.S. stocks climbed again Monday and set more records as investors grew more certain Republicans will pass their tax plan this week. Technology companies climbed, as did banks and retailers, which are likely to see lower taxes.
Stocks have made hefty gains as the GOP appeared to shore up enough support to pass the bill, and Congressional Republicans are scheduled to start voting on the legislation today. The biggest gains have gone to companies that pay relatively higher tax rates, including smaller, U.S.-focused companies, banks and retailers.
“A lot of those companies don’t have, or haven’t taken advantage of, all of the nooks and crannies of the tax code,” said Jason Pride, director of investment strategy at Glenmede. He thinks the average company will get a roughly 4 percent boost to its profits, and a tax break on corporate investment could push companies to spend more money on equipment.
Local gas prices continue to fall
Average retail gasoline prices in Chattanooga dropped another 3.3 cents per gallon in the past week as Chattanooga continued to offer motorists the cheapest fuel in Tennessee.
According to GasBuddy’s daily survey of 170 gas outlets in Chattanooga, the average price of regular gas in Chattanooga fell to $2.08 a gallon at the start of the week, or 33 cents below the U.S. average. As more than 97 million motorists prepare to hit the road for the Christmas or New Year’s holidays ahead, gas prices in Chattanooga are still 9.6 cents per gallon above a year ago. But fuel prices have dropped steadily from the August peak reached after Hurricane Harvey hit the Gulf Coast and are down by 11.3 cents per gallon in Chattanooga from where they were a month ago.
The Sam’s Club station on Lee Highway is selling the cheapest gas in Tennessee at $1.93 per gallon.
Homebuilder optimism is highest since 1999
U.S. homebuilders are feeling more optimistic than they have in nearly two decades.
The National Association of Home Builders/Wells Fargo builder sentiment index released Monday rose five points to 74 this month. That’s the highest reading since July of 1999, more than 18 years ago.
Readings above 50 indicate more builders see sales conditions as good rather than poor. The index has remained above 60 since September of 2016.
The index exceeded the expectations of analysts surveyed by FactSet, who expected a reading of 70.