The market has been tied up in knots all session long for multiple reasons. Corporate earnings were somewhat confusing, with a big chunk of disappointments.
There is anxiety about the timetable for tax cuts, which many thought would be part of an aggressive 100-day agenda. Now it’s possible that it will get pushed out to late summer with implementation in 2018.
Meanwhile, I would say look at December numbers for Costco, which underscore the American consumer is beginning to spend (which will be reiterated with earnings results from Amazon after the close).
Sales climbed to $9.08 billion or 9% from a year earlier.
|
Comparable Store Sales |
December (4 Weeks) |
|
US |
+6% |
|
Canada |
+11% |
|
Other International |
+4% |
|
Total |
+7% |
Adjusted for gasoline and currency
|
Comparable Store Sales |
December (4 Weeks) |
|
US |
+5% |
|
Canada |
+1% |
|
Other International |
+8% |
|
Total |
+5% |
There was one rally attempt that fizzled when Paul Ryan spoke to the press, and didn’t mention tax cuts, and President Trump immediately followed without mentioning tax cuts.
I suspect a NAFTA deal is getting really close, and it could happen if bureaucrats move out the way.