Tags: Trump Administration | Trump Tax Reform | strategist | tom lee | businesses | trump | tax

Strategist Tom Lee: 'Businesses Do Like Trump'

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By    |   Friday, 20 October 2017 01:42 PM

Strategist Tom Lee says President Donald Trump's vow of sweeping tax reform is one of the factors that has pushed the stock market to record highs seemingly on a daily basis.

"Businesses do like Trump," Lee, managing partner and head of research at Fundstrat Global Advisors, told CNBC.

The Senate on Thursday approved a budget blueprint for the 2018 fiscal year that will pave the way for Republicans to pursue a tax-cut package without Democratic support.

But Lee cautions that businesses still don't know the full consequences of Trump's tax plan.

Lee explained that businesses still don't know the full consequences of Trump's plan.

"It may not matter for months," Lee said, "because we really won't know what the impact on businesses ultimately is. But it's hard to say it's not positive."

Technology and bank stocks lifted Wall Street on Friday and investor optimism received a fresh boost from Washington, where the Trump administration inched a step closer to implementing tax-cut plan.

Hopes of tax cuts have helped the market rally, as companies expect the move to lift economic growth and inflation, Reuters reported.

“It clearly is a positive and has added to the sentiment,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis.

“Any legislative action that promotes economic growth, clearly will be additive to not only sentiment but presumably earnings.”

Meanwhile, Trump, in a series of early morning tweets, praised the Senate's budget passage, saying it is the first step toward delivering "massive" tax cuts.

Trump went out of his way to acknowledge Senate Majority Leader Mitch McConnell, R-Ky. One of his tweets included a short video of McConnell talking up the budget approval. The video later promotes the tax package noting, "Americans need tax reform."

The budget was passed Thursday night by the Senate and allows Republicans to use a procedural maneuver to approve tax legislation with 50 or more votes, The Washington Post noted. In doing so, it eliminates the need for Senate Democrats to support it.

(Newsmax wire services contributed to this report).

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Strategist Tom Lee says President Donald Trump's vow of sweeping tax reform is one of the factors that has pushed the stock market to record highs seemingly on a daily basis.
strategist, tom lee, businesses, trump, tax, cut
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Friday, 20 October 2017 01:42 PM
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