December 04, 2017

Quincy Krosby

The Senate’s passage of its version of a tax reform bill is being greeted by the market as a viable sign that congressional Republicans are determined to get a deal signed, sealed and delivered to the president’s desk as quickly as possible, Prudential’s Chief Market Strategist Quincy Krosby said Monday in her weekly “Connecting the Dots” outlook.

The House of Representatives and Senate versions of the proposal now need to be reconciled, Krosby noted, and while there are important differences between the two, expectations are that they will negotiate a final bill.

“There is a powerful catalyst to get this finished as soon as possible so they can deliver something to the market and the American people before the 2018 elections,” she said. “The market is rejoicing at the potential to put more money on the balance sheet for American companies.”

Another potential market mover is the megadeal announcement of the $69 billion CVS purchase of Aetna as a precursor to how health care will be delivered, Krosby said. It could serve as a catalyst for continued consolidation in the health care sector.

“There is nothing better for the market than for deal flow to pick up, and this is one is major,” she said.

Friday’s employment report, the final one of 2017, is expected to show between 190,000 and 200,000 jobs created based on consensus estimates, she said. Wage growth is projected to have ticked higher as the labor market continues to tighten.

North Korea continues to hover in the background as the president warned “we will take care of it” following the regime’s latest missile launch.

This week’s data releases:

  • Monday: Factory Orders.
  • Tuesday: PMI Services Index, ISM Non-Manufacturing Index.
  • Wednesday: ADP Employment Report.
  • Thursday: Challenger Job-Cut Report.
  • Friday: Employment report, Consumer Sentiment.

 

 

To talk to Quincy Krosby about her views of the market, contact Lisa M. Bennett or Dara Scerbo.
 

Read Quincy Krosby’s full Q4 Market Commentary: The End Game.

Contacts:
Lisa M. Bennett
phone 973-802-2894

Dara Scerbo
phone 973-367-9318

The views and opinions are those of the author at the time of publication and are subject to change at any time due to market or economic conditions. This is solely for informational purposes. This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.


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