Markets: The market fell this week, in the wake of the GOP failing to pass its revised healthcare bill to replace the Affordable Care Act. This was the market’s worst week of 2017, with the S&P falling over 1.4%. Small caps fared even worse, falling 2.87%.
The Congressional Budget Office estimates that the GOP’s new health care bill would have taken away health coverage for 24 million Americans. The revised bill would have reduced the U.S. deficit by only $150 billion over 10 years, whereas the original bill aimed to reduce the deficit by $337 billion.
Political observers are now saying that HHA head Tom Price, a long-time opponent of the ACA, may use his agency’s powers to sabotage and undermine the ACA.
Next on the DC agenda will be Tax reform, which may have a better chance of passing, before the August summer break. The campaign promise was for a 15% corporate tax rate, but that counted on savings from the defunct healthcare bill, so now observers are pointing to a rate in the 25 -30% range.
Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: Armada Hflr Pr (NYSE:AHH), Ares Capital Corporation (NASDAQ:ARCC), 8Point3 Energy Partners LP (NASDAQ:CAFD), Chimera Investment Corporation (NYSE:CIM), CSAL, Pioneer Municipal High Income Trust (NYSE:MHI), NAVH.
Volatility: The VIX rose 15% this week, finishing at $12.96.
Currency: The US Dollar Index fell vs. most major currencies, except the Aussie.
Market Breadth: 6 of the DOW 30 stocks rose this week, vs. 23 last week. 24% of the S&P 500 rose, vs. 74% last week.
US Economic News: New Home Sales hit a 7-month high, with home buyers spurred on by rising rates. But Existing Homes fell short, selling at a 5.48M clip in February, vs. 5.69M in January.
Week Ahead Highlights: It’ll be a heavier data week, with many economic reports due out, including Consumer Confidence and Sentiment, Q4 GDP, and PCE Prices, a Fed favorite proxy for inflation.
Next Week’s US Economic Reports:
Sectors & Futures: Financials and Telecoms trailed this week, with Utilities leading. (If you’re looking for good Utilities high dividend stocks, check out our Sunday Seeking Alpha article.)
Natural Gas futures gained over 4.5% this week, while WTI Crude fell 2.4%:
