October 30, 2017
A report that the House is considering a plan to phase in corporate tax cuts over 4 years, and not implement them immediately, is raising talk that Republican efforts for tax reform may fall short. Reports that President Trump will name his choice for Federal Reserve chair on Thursday added to the session's defensiveness as did the announcement of conspiracy charges against two former officials of the Trump campaign and a former campaign advisor, charges that do not involve the Trump administration. The Dow slipped 0.4 percent to 23,348.
In economic news, the core PCE price index, at only a 0.1 percent monthly gain, remains stubbornly flat and has yet to show any effects from recent wage increases. But income is up, at 0.4 percent in September, with consumer spending surging a monthly 1.0 percent driven by replacement demand for hurricane-damaged vehicles.
Demand for bonds, which had been easing, picked back up with the 10-year Treasury yield falling 5 basis points to 2.37 percent. With no new headlines coming out of Catalonia, the euro firmed to $1.1660 and helped to pull the dollar index 0.5 percent lower to 94.44. Oil, just over $54, and gold, near $1,275, were little changed.