{"id":2219,"date":"2017-11-05T14:17:23","date_gmt":"2017-11-05T19:17:23","guid":{"rendered":"https:\/\/envisionco.net\/?p=2219"},"modified":"2017-11-05T14:17:23","modified_gmt":"2017-11-05T19:17:23","slug":"week-ending-1132017-2","status":"publish","type":"post","link":"https:\/\/envisionco.net\/?p=2219","title":{"rendered":"Week Ending 11\/3\/2017"},"content":{"rendered":"<p><strong>HIGHLIGHTS<\/strong><\/p>\n<ul>\n<li>Equities hit another high.<\/li>\n<li>Oil futures break out to a two-year high.<\/li>\n<li>Jerome Powell nominated as the new Fed chair.<\/li>\n<li>Another strong employment report.<\/li>\n<li>Republican&#8217;s release their tax plan.<\/li>\n<\/ul>\n<p><strong>PERFORMANCE<\/strong><\/p>\n<p>The market finished the week at another high. US equities were up by 0.14%, international equities increased by 0.86%. The dollar advanced by 0.21%. Bonds were up by 0.21% as the spread between the 10 and the 2-year note dropped by 12 basis points to 0.71%. That is down from 0.93% on September 30th and from 1.25% on December 31.<\/p>\n<p>Oil broke out to a new year two year high, as crude oil futures were up by 3.23%.<\/p>\n<p><a href=\"https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/Oil-Futures-Price-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-2235\" src=\"https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/Oil-Futures-Price-1-300x135.png\" alt=\"\" width=\"300\" height=\"135\" srcset=\"https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/Oil-Futures-Price-1-300x135.png 300w, https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/Oil-Futures-Price-1-768x344.png 768w, https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/Oil-Futures-Price-1-500x224.png 500w, https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/Oil-Futures-Price-1.png 805w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><strong>NEW FED CHAIR<\/strong><\/p>\n<p>President Trump nominated Jerome Powell to succeed Janet Yellen as the new Federal Reserve Chair. With Powell, Trump gets a consensus-driven leader that will likely stick to Yellen&#8217;s laid out plan of gradual interest-rate hikes and the unwinding of the balance sheet. But Powell is more in tune with the Republican deregulation agenda.<\/p>\n<p>Powell will become the 15th chair in the 103-year history of the Fed. According to Ned Davis Research, the average gain during the first six months after a new Fed chair for the Dow is 2.1%, with a median drawdown of 10.5%.<\/p>\n<p>The Fed is expected to raise interest rates in December.<\/p>\n<p><strong>EMPLOYMENT<\/strong><\/p>\n<p>Nonfarm payroll increased by 261,000. Average hourly earnings stayed the same month over month and are up 2.4% year over year. The unemployment rate dropped to 4.1%, a 17-year low. But the drop was primarily due to the decline in the labor force participation rate to 62.7% from 63.1%. Hiring in September was revised to a positive 18,000 from an original estimate of -33,000. The tight labor market has some economists now projecting four interest-rate increases in 2017, instead of three.<\/p>\n<p><a href=\"https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/jobless-rate.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-2228\" src=\"https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/jobless-rate-300x236.png\" alt=\"\" width=\"300\" height=\"236\" srcset=\"https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/jobless-rate-300x236.png 300w, https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/jobless-rate-768x603.png 768w, https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/jobless-rate-382x300.png 382w, https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/jobless-rate.png 872w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><strong>PROPOSED TAX PLAN<\/strong><\/p>\n<p>The House made public their proposed tax plan, titled the &#8220;Tax Cut and Jobs Act&#8221;, with the primary aim of helping businesses. For individuals, while there will be mainly winners, some will end up paying more in taxes. It is likely the plan won&#8217;t survive in its current form, and it may end up not being passed at all, like past Trump initiatives. The bill is designed to <em>only<\/em> cost the treasury $1.5 trillion over the next ten years. Here are the highlights:<\/p>\n<ul>\n<li>The top rate for corporations drops to 20% from 35%.<\/li>\n<li>For corporations, net interest deductibility is limited to 30% of earnings before interest, taxes, depreciation, and amortization\u00a0(EBITDA).<\/li>\n<li>Repatriation of cash from overseas would be taxed at a one-time rate of 12% and 5% for non-cash.<\/li>\n<li>The tax rate on pass-through entities, mostly small businesses, such as sole-proprietorships, partnerships, and Sub-S corporations falls to 25%. Now such entities are taxed at the individual income tax rates, as high as 39.6%.<\/li>\n<li>The top-rate for individuals remains at 39.6% but would start at $500,000 instead of the current $418,000.<\/li>\n<li>The six remaining brackets now become three: 35%, 25%, and 12%.<\/li>\n<li>The alternative minimum tax is eliminated.<\/li>\n<li>The estate tax exemption becomes $11.2 million per person instead of $5.49 million.<\/li>\n<li>The standard deduction is doubled.<\/li>\n<li>The deduction for state and local income taxes is eliminated.<\/li>\n<li>The property-tax deduction is capped at $10,000.<\/li>\n<li>Only homes up to $620,000 would qualify for full interest deductibility assuming the buyer puts at least 20% down.<\/li>\n<li>Private-purpose bonds would no longer be tax-exempt. These are the kinds of bonds often used for sports stadiums.<\/li>\n<\/ul>\n<p><strong>SCOREBOARD<\/strong><\/p>\n<p><a href=\"https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/Performance-11-3-2017.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-2233\" src=\"https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/Performance-11-3-2017-202x300.png\" alt=\"\" width=\"202\" height=\"300\" srcset=\"https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/Performance-11-3-2017-202x300.png 202w, https:\/\/envisionco.net\/wp-content\/uploads\/2017\/11\/Performance-11-3-2017.png 580w\" sizes=\"auto, (max-width: 202px) 100vw, 202px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>HIGHLIGHTS Equities hit another high. Oil futures break out to a two-year high. Jerome Powell nominated as the new Fed chair. Another strong employment report. Republican&#8217;s release their tax plan. PERFORMANCE The market finished the week at another high. US &hellip; <a href=\"https:\/\/envisionco.net\/?p=2219\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1893,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2219","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/envisionco.net\/index.php?rest_route=\/wp\/v2\/posts\/2219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/envisionco.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/envisionco.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/envisionco.net\/index.php?rest_route=\/wp\/v2\/users\/1893"}],"replies":[{"embeddable":true,"href":"https:\/\/envisionco.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2219"}],"version-history":[{"count":14,"href":"https:\/\/envisionco.net\/index.php?rest_route=\/wp\/v2\/posts\/2219\/revisions"}],"predecessor-version":[{"id":2238,"href":"https:\/\/envisionco.net\/index.php?rest_route=\/wp\/v2\/posts\/2219\/revisions\/2238"}],"wp:attachment":[{"href":"https:\/\/envisionco.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/envisionco.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/envisionco.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}