The market bonanza continued today, with the Dow adding well over 400 points over the last two days. Let’s look into this massive breakout.
$1 France’s election results have boosted global trading. Emmanuel Macron and Marine Le Pen emerged as finalists for France’s Presidential election, a momentous occasion for several reasons.
- This is the first time the two major political parties in France have no presidential candidate
- Mr. Macron finished ahead of Ms. Le Pen in the polls, a signal that France has rebuked her populist, pro-Russia platform (sound familiar?)
- Bank stocks have flourished under a diminished threat of France seceding from the European Union and taking on protectionist policies (under Le Pen)
$2 Banks are charging forward at the point listed above as well as the hope of tax reform in the U.S. President Trump is set to unveil his tax reform plan on Wednesday, rumored to include a 15% tax rate for “owner-operated” businesses. This includes pass-through entities and solo practitioners such as doctors, dentists, and lawyers. Bank of America ($BAC) has gained 5.5% this week.
$3 The government’s continuing resolution is set to expire at 23:59 on Friday, setting up a budget showdown between Trump, who demands funding to start the Mexican border wall, and the rest of Congress…well…that’s what we thought. The President relaxed his demand for immediate funding for the wall, so a resolution is expected with little fanfare.
All is good in the land! I kept a straight face, I promise.