U.S. indices rose the evening of Sunday, Nov. 12, as investors look forward to additional clarity on Congress' dueling tax plans.
Dow Jones Industrial Average futures rose 0.06%, followed by the Nasdaq, up 0.05%. S&P 500 futures ticked up 0.02%. The dollar rose 0.05% against the euro, 0.22% against the pound and 0.13% against the yen.
This week the House and the Senate are moving forward to advance their respective tax plans. The House bill calls for four individual tax brackets, a mortgage deduction cap of $500,000, corporate tax rates lowered to 20% and some compromise on the state and local tax deduction. In contrast, the Senate plan includes seven tax brackets, a mortgage deduction cap of $1 million, corporate tax rates of 20% after a one-year delay and a full elimination of the state and local tax deduction.
The House bill was approved by the Ways and Means Committee last week and will be debated by the full House this week. According to the Tax Policy Center, the bill would raise taxes for 31% of middle-class households by 2027. The Senate bill was unveiled Thursday and has not been scored.
Not on the chopping block in either plan is the carried interest loophole, which President Trump, Treasury Secretary Steven Mnuchin and White House economic adviser Gary Cohn all said during the campaign would be repealed.
Trump is in the Philippines Sunday, the last leg of his nearly two-week tour of Asia, after stops in Japan, South Korea, China and Vietnam. Apart from a series of tweets this weekend, the trip has been mostly uneventful.
In the year since Trump's election, the S&P 500 has returned 21%, the sixth-highest rally in the first year of a presidential term, after Franklin D. Roosevelt in 1944 (30%), Bill Clinton in 1996 (30%), John F. Kennedy in 1960 (29%), Barack Obama in 2012 (24%) and George H.W. Bush in 1988 (22%), according to Goldman Sachs research.
Despite relatively calm markets, last week's credit sell-off suggests "a 'dress rehearsal' for potential meltdown," which "requires recession risk or higher wage inflation/bond yields/bond vol" to materialize, according to Bank of America analysts.
Consumer and retail earnings this week include Advance Auto Parts Inc. (AAP) - Get Advance Auto Parts, Inc. Report , Dick's Sporting Goods Inc. (DKS) - Get Dick's Sporting Goods, Inc. Report , Home Depot Inc. (HD) - Get Home Depot, Inc. Report and TJX Companies Inc. (TJX) - Get TJX Companies Inc Report on Tuesday; L Brands Inc. (LB) - Get L Brands, Inc. Report , Target Corp. (TGT) - Get Target Corporation Report and Williams-Sonoma Inc. (WSM) - Get Williams-Sonoma, Inc. Report on Wednesday; Best Buy Co. Inc. (BBY) - Get Best Buy Co., Inc. Report , Gap Inc. (GPS) - Get Gap, Inc. Report , J.M. Smucker Co. (SJM) - Get J.M. Smucker Company Report , Ross Stores Inc. (ROST) - Get Ross Stores, Inc. Report , Shoe Carnival Inc. (SCVL) - Get Shoe Carnival, Inc. Report and Walmart Stores Inc. (WMT) - Get Walmart Inc. Report on Thursday; and Abercrombie & Fitch Co. (ANF) - Get Abercrombie & Fitch Co. Class A Report , Buckle Inc. (BKE) - Get Buckle, Inc. Report and Foot Locker Inc. (FL) - Get Foot Locker, Inc. Report on Friday.
Non-retailers reporting earnings this week are Juniper Pharmaceuticals Inc. (JNP) - Get Juniper Pharmaceuticals, Inc. Report on Monday; JinkoSolar Holding Co. Ltd. (JKS) - Get JinkoSolar Holding Co. Ltd. Report on Tuesday; Progressive Corp. (PGR) - Get Progressive Corporation Report on Wednesday; and Helmerich & Payne Inc. (HP) - Get Helmerich & Payne, Inc. Report , Splunk Inc. (SPLK) - Get Splunk Inc. Report and Viacom Inc. (VIAB) - Get Viacom Inc. Class B Report on Thursday.
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, which Cramer manages as a charitable trust, is long TJX.