The Economy
Republicans Unveil New Tax Bill
On Thursday, the U.S. House of Representatives Republicans unveiled the much-anticipated tax-cut bill, which would represent the largest tax overhaul since the 1980s. The bill proposes to cut corporate tax rates to 20% from 35%, reduce the number of tax brackets, as well as create a new family tax credit.
Trump Nominates Powell As Next Federal Reserve Chair
President Donald Trump has nominated Jerome Powell to serve as the next head of the U.S. central bank, replacing Janet Yellen when her term expires in February. Mr. Powell has served as Federal Reserve Governor since 2012.
Bank of England Hikes Interest Rates For First Time Since 2007
The Bank of England has raised interest rates for the first time in more than a decade, increasing the Bank Rate to 0.5% from 0.25%. The BoE cites a 2% inflation target as the driving force behind this interest rate hike.
The Markets
S&P Stays Flat, Dow Climbs To Record High
The S&P 500 held steady on Thursday in reaction to the newly proposed tax reform, while the Dow Jones rose by 81.25 points to a record high. The Nasdaq was down moderately by 1.59 points.
As well, the U.S. dollar fell to its lowest point in a week against several major currencies following the new tax bill.
Bitcoin Hits $7,000 Mark
Bitcoin’s value has now hit the $7,000 mark for the first time, and the cryptocurrency is now up by over 600% since the start of the year. Its price surge was strengthened by the news yesterday that CME Group Inc. (NASDAQ:$CME) plans to launch bitcoin futures later this year.
Qualcomm Sues Apple For Contract Breach
Qualcomm Inc. (NASDAQ:$QCOM) has sued Apple Inc. (NASDAQ:$AAPL) for an alleged software licence contract violation to benefit Qualcomm rival Intel Corp. (NASDAQ:$INTC). Earlier this week, it was reported that Apple would drop Qualcomm’s chips altogether from its iPhones and iPads from next year.
AT&T In Talks With Justice Department Regarding Time Warner Deal
AT&T Inc. (NYSE:$T) and the U.S. Department of Justice are in discussions over certain conditions that AT&T is required to meet in order to complete its merger with Time Warner Inc. (NYSE:$TWX), which was previously expected to be closed by the end of 2017.
According to The Wall Street Journal, the DOJ is considering a lawsuit to block the merger if the government and the companies cannot agree on a settlement. However, AT&T is confident that the merger will still go through.
Top Active Stocks
Facebook (NASDAQ:$FB) saw its share price fall by 2% on Thursday despite posting strong Q3 results, as investors are showing concerns over the company’s decision to increase spending on security, which could affect profits in the future.
Alibaba (NYSE:$BABA) opened at a record high on Thursday as the company outperformed expectations for its fiscal Q2 and raised its full-year revenue growth forecast.
General Electric Co. (NYSE:$GE) continued its decline on Thursday, closing at $19.94 a share. Earlier today, a shareholder sued the company over alleged securities fraud for concealing information related to demand, inventory, and costs to inflate its stock price.
Bank of America Corp. (NYSE:$BAC) has reached a $66.6 million settlement to end a lawsuit accusing the bank of collecting unlawfully high rates of interest (extended overdraft fees) from customers who let their checking accounts stay overdrawn for several days. Its stock was up by 1% following this development.
Teva Pharmaceutical Industries Ltd. (NASDAQ:$TEVA) shares plunged by almost 20% after reporting a drop in profit for the third quarter due to increased competition in the U.S. This follows shareholder Allergan PLC’s announcement yesterday that it will begin selling its approximate 10% stake in Teva, which has lost 60% of its value this year.
Oclaro Inc. (NASDAQ:$OCLR) also plummeted on Thursday following its earnings release yesterday, which offered a disappointing revenue outlook for the next quarter. Its stock is down by over 26%.
Featured image: Depositphotos/ tashatuvango
