Market indexes hit more record highs today. Optimism regarding the new tax plan has helped push the Dow over 24,800, and almost up to 24,900, before finishing for a 140 point gain for the day and closing at 24,792. The NASDAQ briefly went over 7,000 as the major tech stocks were up, including a big day from Twitter which made an 11% gain after JP Morgan upgraded the stock outlook. The S&P is nearing in on 2,700, and even markets in Europe are benefitting from the US market rally.
The details of the new tax bill were released late Friday afternoon. Updates to the bill included the keeping of 7 tax brackets instead of the proposed reduction to 3 or 4 tax brackets, increasing the child tax credit from $1,000 to $2,000, mortgage interest deductions will be capped at $750,000, a corporate tax rate of 21% instead of the proposed 20%, and pass through companies being able to deduct 20% of their income under. As expected, the standard deduction will double to $24,000, the healthcare mandate will be eliminated, and the estate tax limit doubled to $22M per family.
Sad local news today, as Amtrak train 501 derailed and fell into the south bound lanes of I-5 between Tacoma and Olympia. This was the inaugural run of this train route, which has some wondering about the safety of the track. Anyone needing to commute on south bound I-5, it will be closed for the rest of the day, and possibly for a couple days. It is also expected that the state patrol will be out there for several days investigating. The Greystone team sends our thoughts and prayers out to the passengers and crew, and the families affected by this tragedy