The S&P 500 opened the week higher following the news of the passage of the Senate’s version of the Tax Reform Bill. House and Senate Republicans now hope to finalize and pass a joint bill before December 22nd.
Monday opened higher on the news, however, as the session wore on, the initial gains turned to minor losses. The S&P 500 continued to trade at a loss for most of the week. Only Thursday and Friday sessions saw daily gains.
Friday’s session opened higher following the release of the Employment Situation Report. November’s Report showed a monthly increase of 228,000 jobs compared to the consensus expectations of 190,000.
In the end, the Major Markets ended the week mixed with losses in the Nasdaq and Emerging Markets while there were minor gains in the Dow Jones, S&P 500, and the MSCI World Index.
Economic news was light last week and took a back seat to the resignations of multiple politicians after repeated allegations of sexual misconduct.
Democrat Representative John Conyers Jr. of Michigan, the longest-serving active congressman, announced on December 5th that he was resigning after multiple allegations.
Additionally, Democrat Senator Al Franken of Minnesota announced on Thursday that he would be stepping down, but failed to specify when exactly his departure would take place.
Hours later, Republican Representative Trent Franks of Arizona announced his resignation after the House Ethics Committee announced that they had opened an investigation.
This week, hopefully news remains focused on economic headlines. On Tuesday, Janet Yellen will begin not just the final Fed meeting for the year but also of her tenure. It is widely expected that they will announce a rate hike of 25 basis points this week, which would bring the fed funds target range to 1.25%-1.50%.