Nasdaq 100 Surged to High ahead of Tax Legislation
By: Eddy Peng Dec 18, 2017
The U.S. stock markets soared to the record high on Friday as markets are feeling optimistic that the tax bill will become law this week, with a Senate vote as early as Tuesday and President Donald Trump aiming to sign the bill by week’s end.
The Nasdaq 100 index succeed in rallying since Dec. 5th and has kept rising roughly 3.56 percent over the past two weeks, with gaining 1.47 percent or 93.7 points to settle at 6481.3 on Friday, the new highs in history.
For Nasdaq 100 on Friday, the biggest gainers of the session were Biomarin Pharmaceutical Inc (NASDAQ: BMRN), which rose 5.07 percent or 4.49 points to settle at 93.02. Express Scripts Holding Co (NASDAQ: ESRX) gained 3.67 percent or 2.53 points to end at 71.55 and Costco Wholesale Corporation (NASDAQ: COST) was up 3.32 percent or 6.20 points to 192.73 in late trade.
However, the biggest losers included CSX Corporation (NASDAQ: CSX), lost 7.64 percent or 4.38 points to end at 52.93, while Sirius XM Holding Inc (NYSE: SIRI) declined 5.12 percent or 0.290 points to 5.370 and Starbucks Corporation (NYSE: SBUX) shed 2.36 percent or 1.41 points to close at 58.29.
The staggering growth for the stock market probably reflects that investors are quite confident in passing the legislation by this week, probably on Tuesday, and positive influence brought to the U.S. corporations, which has been expected for a long time though.
Recent released economic data also showed a robust economic performance in America, with U.S. retail sales increased 0.8 percent, more than expected in November, as the holiday shopping season got off to a brisk start, pointing to sustained strength in the economy that could pave the way for further Federal Reserve interest rate hikes next year.
Aside from that, U.S. industrial production rose at a slower pace in November as factory output moderated following the biggest advance in more than seven years that reflected a hurricane-related surge, Federal Reserve data showed Friday.
Technically the NASDAQ 100 Index has been still consolidating in a developing ascending price channel for broader outlook, starting from early this year. As shown in the daily chart below, it’s facing a key resistance found at upper channel line, which is trying to impede the index from rising at higher speed.
Actually at this moment, predicting its movement from technical analysis would be hard. Rather than that, it would be more sensitive with news from macro-economy, like influences of tax overhaul on the economy as a whole in the near term.
Chart 1: NAS100 Daily
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