Stocks are in rally mode on Thursday.
Just after before 2:00 p.m. ET, markets were green across the board in New York, with the Dow up over 210 points, the S&P 500 up 22, and the Nasdaq up 58. Each of these gains is better than 0.9%, and this rally follows two disappointing days for markets.
After a 4% slide on Wednesday, crude oil prices were up about 0.2%, and gold prices were down about 0.3%. Treasury yields were higher with the 10-year up to 2.25% in afternoon trade and the 2-year near 1.20%. The dollar index was down about 0.3%.
Update 2:53 p.m. ET
According to U.S. Treasury Secretary Steven Mnuchin, the Trump administration will unveil a tax reform plan, “soon, very soon,” according to Reuters. Mnuchin’s comments came at a conference in Washington, D.C.
“It will be sweeping, it will be significant and it will create a lot of economic growth,” Mnuchin added.
These comments come during a day when markets were rallying across the board, with his commentary pushing up the dollar towards unchanged after having been down earlier in the session. Stocks remained near session highs and bonds near session lows after these comments.
Mnuchin’s comments come during a day when a potential healthcare package from the White House was being revived. “Whether health care gets done or health care doesn’t get done, we’re going to get tax reform done,” Mnuchin said.
Update 1:59 p.m. ET
Tesla has announced a recall.
On Thursday, the company announced it would 53,000 of its Model S and Model X cars due to a braking issue.
“The electric parking brakes installed on Model S and Model X vehicles built between February and October 2016 may contain a small gear that could have been manufactured improperly by our third-party supplier,” according to the company.
Following the news, shares of the company quickly moved lower and were off about 1% in afternoon trade.
Update 12:30 p.m. ET
A new report from Politico indicates that ahead of next Friday’s deadline to agree on a continuing resolution to keep the government funded or risk a government shutdown, House Republicans are trying to find a new way to repeal Obamacare.
From Politico’s Adam Cancryn:
House Republicans are outlining a new deal that could revive their bid to repeal Obamacare — and set up an all-out sprint to make concrete progress on health care amid the specter of a government shutdown. […]
The deal — brokered by centrist Tuesday Group co-chair Tom MacArthur (R-N.J.) and hard-right Freedom Caucus head Mark Meadows (R-N.C.) — proposes giving states more flexibility to opt out of major Obamacare provisions, while at the same time preserving popular protections like the law’s ban on discrimination against people with pre-existing conditions.
It remains unclear whether the proposal can succeed in shifting any votes — President Donald Trump and leaders were forced to abandon a planned vote last month in the face of intra-party rebellion.
Still no word on taxes.
Update 12:08 p.m. ET
Big food stocks are “doomed,” say analysts at Credit Suisse.
In a note to clients on Thursday, Robert Moskow and his team at the firm write (emphasis ours):
Despite sales trends slipping into negative territory, Big Food companies remain locked into aggressive strategies to reduce costs rather than invest in growth. Big Food management teams are increasingly resigning themselves to assume a zero growth environment or worse for the next 1-2 years due to rising consumer distrust for processed foods, stubbornly weak pricing, and the slowdown in emerging markets. Pressure from activist investors and the emergence of private-equity controlled Kraft Heinz has raised the industry benchmark for profit margins. As a result, the stock prices of food companies now depend more heavily on margin expansion than at any time we can recall.
Previously Posted on Yahoo Finance