Wake up, investors: Naturally, the passing of the tax plan was going to be used by big companies to make themselves look great and curry favor with Sir Trump. Come on, let's be brutally honest here. AT&T (T - Get Report) is giving out $1,000 bonuses to workers hawking Apple (AAPL - Get Report) iPhones in the hopes of getting its mega Time Warner (TWX deal done. Wells Fargo (WFC - Get Report) is lifting its minimum wage to $15 an hour for employees helping to open checking accounts in the hopes of not feeling Trump's wrath in the wake of the bank's fake accounts scandal. But all the grandstanding does shed light on one thing that should be of interest to investors: the profit explosion that corporate America is about to endure in 2018 and 2019. It could be argued that as those aforementioned workers -- and their parent companies -- get out there and spend, Wall Street will quickly realize its profit forecasts are too low. For instance, Goldman Sachs only sees a 5% lift to 2018 S&P 500 earnings from the corporate tax cut. How isn't that conservative considering greater consumer spending power and corporate spending on stock buybacks? All I am saying is that if the market is going to sell the tax law news like it has this week, it may be prime-time to buy stocks in bulk.
Your annual Apple predictions: All in all, it has been a solid year for tech giant Apple. CEO Tim Cook has granted media some interviews and has come away looking like a true world class leader. Airpods are sold out this holiday season. The iPhone X isn't that bad, though it's not life-altering. Apple's stock is up 50% headed into the last week of 2017. With that in mind, TheStreet's Eric Jhonsa unveiled his annual Apple predictions. Get ready for a massive dividend hike, Jhonsa hinted. Here is one prediction to add to Jhonsa's list: Apple's market cap will surge past $1 trillion in the first quarter of next year. I am highly credible on this, as this video would suggest.
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Amazon is making bank here: Dang,Apple going to have a difficult time cracking into the smart speaker market with its HomePod. According to veteran tech analyst Mark Mahaney at RBC, Amazon (AMZN - Get Report) will ring up $11 billion in sales related to its Alexa digital assistant. The estimate breaks down to $5 billion in hardware sales and about $6 billion in sales from people ordering off Amazon with their voice. Alexa also continues to see rising brand awareness, said Mahaney.
Chronicle this as something you have probably never seen before. While headed into the office today, I clicked on a link that took me to a new Dell Technologies robot called Otto (see video above). Otto moves packages around warehouses, and unlike humans doesn't need an hourly wage or healthcare.
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