Markets finished up for the week, the month and the quarter.
The Trump tax plan was the big economic news of the week. President Trump wants to move from 7 tax brackets, down to 3. He’s proposing changing the corporate tax rate (C-corps) from 35% down to 20%. The pass-through corporate tax rate (S-corps) from 39.5% down to 25%. Trump wants to eliminate the AMT tax, and the death tax. His proposal will likely remove the ability to deduct your state and local taxes from your federal tax return. The tax plan would keep the mortgage and charitable deductions. The personal exemption would increase for a “single” from $6,300 up to $12,000. The personal exemption for a “couple” would increase from $12,600 up to $24,000.
The Q2 GDP was revised from +3.0% up to +3.1%.
New home sales were down -3.4% in August. Year-over-year they’re down -1.2%.
Durable Goods were up +1.7% in August. Year-over-year they’re up +5.1%.
Economic focus of the week: will come on Friday morning when we get the latest jobs and unemployment numbers. Expectations are for only 95,000 jobs, and for the U3 unemployment number to remain at 4.4%.
Indicator focus: September’s ISM manufacturing index (Mon); September’s motor vehicle sales (Tue); ADP’s employment report, September’s ISM non-manufacturing index (Wed); August’s international trade number (Thu); September’s jobs and unemployment numbers (Fri).
Have a great week,
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