Tajuk : These 2 charts show Wall Street thinks Trump’s tax plan won’t help stocks until next year
link : These 2 charts show Wall Street thinks Trump’s tax plan won’t help stocks until next year
These 2 charts show Wall Street thinks Trump’s tax plan won’t help stocks until next year
Associated Press/Evan Vucci
In this Wednesday, May 3, 2017, file photo, President Donald Trump speaks during a school choice event in the Roosevelt Room of the White House in Washington.
Wall Street analysts are telling President Donald Trump that they don’t expect tax reform to help earnings until next year at the earliest.
While share prices in policy-sensitive industries have recently served as a barometer for investor sentiment, future profit forecasts have also emerged as a useful indicator.
For context, the US stock market’s most highly-taxed companies are expected to get the biggest boost to the bottom line from Trump’s proposed corporate tax cut, which would lower the rate to 15% from 35%. Firms that keep high levels of cash overseas are also seen increasing profits through a one-time repatriation tax holiday.
The chart below, from Morgan Stanley, shows that consensus quarterly EPS estimates for 2017 have declined in recent weeks, while forecasts for the first quarter of 2018 have climbed.
The turning point was the failed first attempt to repeal the Affordable Care Act back in March, which spurred some pessimism that the administration will be able to pass legislation in timely fashion.
Morgan Stanley
A second chart provides support for this same point. It shows the average earnings revision for S&P 500 companies since the failure of the March 24 ACA repeal, with the benchmark index divided into quartiles by tax rate. The chart looks at a period spanning the second through fourth quarters of 2017.
As it turns out, the most-taxed companies have seen the biggest downward adjustment, while the most lightly-taxed firms had forecasts raised. The chart signals the partial unwinding of a trade that saw a Goldman Sachs basket of 50 highly-taxed stocks outperform the S&P 500 in the months after Trump’s election victory.
Morgan Stanley
“It is clear to us that consensus bottom-up calendar 2017 EPS estimates have little to no tax reform benefit baked in,” a group of Morgan Stanley equity strategists led by Michael J. Wilson wrote in a client note. “Analysts have removed much of their expectations on tax reform from 2017 numbers.”
Analysts across Wall Street aren’t the only ones adjusting their expectations around Trump’s tax reform. Policy experts from Axios’ Mike Allen to Sen. Chris Coons, a Democrat from Delaware, have recently expressed similar skepticism.
Read more stories on Business Insider, Malaysian edition of the world’s fastest-growing business and technology news website.
✍ Sumber Pautan : ☕ Business InsiderBusiness Insider
Kredit kepada pemilik laman asal dan sekira berminat untuk meneruskan bacaan sila klik link atau copy paste ke web server : http://ift.tt/2psinzb
(✿◠‿◠)✌ Mukah Pages : Pautan Viral Media Sensasi Tanpa Henti. Memuat-naik beraneka jenis artikel menarik setiap detik tanpa henti dari pelbagai sumber. Selamat membaca dan jangan lupa untuk 👍 Like & 💕 Share di media sosial anda!
Associated Press/Evan Vucci
In this Wednesday, May 3, 2017, file photo, President Donald Trump speaks during a school choice event in the Roosevelt Room of the White House in Washington.
Wall Street analysts are telling President Donald Trump that they don’t expect tax reform to help earnings until next year at the earliest.
While share prices in policy-sensitive industries have recently served as a barometer for investor sentiment, future profit forecasts have also emerged as a useful indicator.
For context, the US stock market’s most highly-taxed companies are expected to get the biggest boost to the bottom line from Trump’s proposed corporate tax cut, which would lower the rate to 15% from 35%. Firms that keep high levels of cash overseas are also seen increasing profits through a one-time repatriation tax holiday.
The chart below, from Morgan Stanley, shows that consensus quarterly EPS estimates for 2017 have declined in recent weeks, while forecasts for the first quarter of 2018 have climbed.
The turning point was the failed first attempt to repeal the Affordable Care Act back in March, which spurred some pessimism that the administration will be able to pass legislation in timely fashion.
Morgan Stanley
A second chart provides support for this same point. It shows the average earnings revision for S&P 500 companies since the failure of the March 24 ACA repeal, with the benchmark index divided into quartiles by tax rate. The chart looks at a period spanning the second through fourth quarters of 2017.
As it turns out, the most-taxed companies have seen the biggest downward adjustment, while the most lightly-taxed firms had forecasts raised. The chart signals the partial unwinding of a trade that saw a Goldman Sachs basket of 50 highly-taxed stocks outperform the S&P 500 in the months after Trump’s election victory.
Morgan Stanley
“It
Analysts across Wall Street aren’t the only ones adjusting their expectations around Trump’s tax reform. Policy experts from Axios’ Mike Allen to Sen. Chris Coons, a Democrat from Delaware, have recently expressed similar skepticism.
Read more stories on Business Insider, Malaysian edition of the world’s fastest-growing business and technology news website.
✍ Sumber Pautan : ☕ Business InsiderBusiness Insider
Kredit kepada pemilik laman asal dan sekira berminat untuk meneruskan bacaan sila klik link atau copy paste ke web server : http://ift.tt/2psinzb
(✿◠‿◠)✌ Mukah Pages : Pautan Viral Media Sensasi Tanpa Henti. Memuat-naik beraneka jenis artikel menarik setiap detik tanpa henti dari pelbagai sumber. Selamat membaca dan jangan lupa untuk 👍 Like & 💕 Share di media sosial anda!
dengan itu Perkara These 2 charts show Wall Street thinks Trump’s tax plan won’t help stocks until next year
Kini anda membaca artikel These 2 charts show Wall Street thinks Trump’s tax plan won’t help stocks until next year dengan alamat pautan https://timesnewmalaysia.blogspot.com/2017/05/these-2-charts-show-wall-street-thinks.html
Related Posts :
Why won't you believe Mark Zuckerberg that he's not running for president?- SAYU !! Wan anak saudara Dato Rosyam Nor maut tercampak dan digilis, motosikal GTR nya rempuh Hilux .. (10 Gambar)
- Google and the UN answer Syria queries with a poignant website
Lana del Rey and the Weeknd make trespassing look good in the 'Lust for Life' video- Elak karya diciplak
0 Response to "These 2 charts show Wall Street thinks Trump’s tax plan won’t help stocks until next year"
Catat Ulasan