The DJIA and S&P 500 hit all-time highs in earlier trading, following an overnight passage of the much awaited tax-reform bill. This bill was one of the bigger carrots for investors and spurred the initial post-election rallies. The tech-heavy Nasdaq, however, dropped as major technology companies and internet services saw losses above 1%. FANG stocks had all dropped at least 1% in earlier trading.
This past Friday saw a major event take place in the Russia investigation with a guilty plea from former National Security Advisor Michael Flynn for charges of lying to the FBI.
There are widespread expectations that Flynn will be cooperating with the investigation going forward, which may result in charges against other campaign or administration officials. Ranking member of the Senate Judiciary Committee Dianne Feinstein (D-CA) has indicated the committee is beginning to build a case against President Trump for obstruction of justice. With new developments in these cases, frame each story in terms of its impact on the ability of the administration to continue producing passable agenda items with lawmakers.
We’re seeing a return of heated geopolitical tension with North Korea- who had just recently tested a new high-altitude ICBM. Rhetoric is getting intense again, and the U.S. is again calling on China to contribute to dialing back the situation. These two issues would normally be impacting market trends, but we will likely see these drop out of focus this week until tax-reform news is fully digested.
At the time of publication, the DJIA is up 0.54%, or 131 points, at 24,360. The S&P 500 is trading at 2,646- up 0.15% from the open. The Nasdaq-100 is down 0.76% at 6,795.