Some highlights of this past week’s news in finance
Wall Street hit new highs this week and futures gained stability as President Trump announced the upcoming unveil of a phenomenal tax plan that is expected to benefit corporations. President Trump will potentially unveil his tax plan on his February 28th State of the Union Address to Congress. While no details have been released, the promise of the tax plan has encouraged investors to remain bullish.
The Dow Jones Industrial Average, S&P 500, and NASDAQ Composite all hit record highs.
Additional relief came when Mr. Trump informed Chinese President Xi Jinping that he would respect the “one-China policy”, averting potential tension between the two economic powerhouses.
In Commodity news, OPEC countries reined in oil production in the first month of their new production agreement, showing a commitment to stabilize global oil prices. The International oil benchmark, Brent Crude, jumped more than $1 rising to $56.73.
Historically, OPEC has a poor record committing to such agreements and does not penalize member countries for failing to comply. This brings up some doubts as to whether or not the oil conglomerate will be able to fulfill its November agreement.
Moelis & Co. secured the Saudi Aramco IPO, expected to be the world’s largest with some estimates at $2Tn. This offering also seeks to revitalize the Saudi economy through using additional proceeds from the offering to pump into non-oil investments as a means to diversify the Middle Eastern oil powerhouse.
Twitter shares plummeted as the social media giant posted its slower revenue growth in company history last quarter. Even after the extensive fanfare that has followed in the past year with President Trump’s active posting on the site, Twitter continues to struggle to maintain rapid growth. While the company has introduced new product additions like live streaming to compete with rivals Facebook and YouTube, Twitter continues to have stagnant new user growth.