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Last Week: Review -- Barron's

11 Nov 2017 11:00 am

A Different Tax Plan

Senate Republicans disclosed their version of tax reform, with important differences from the House proposal. The Senate bill would delay a corporate tax cut until 2019, and double the estate-tax exemption to a maximum of about $11 million per person while leaving the 40% tax in place. Also, the Senate would end deductions for state and local taxes, set a top tax rate of 38.5% for individuals, leave the seven-bracket structure in place, and keep the mortgage-interest deduction cap of $1 million.

Markets Waver

Equity markets saw gains trimmed by uncertainty over tax reform. On the week, the Dow Jones Industrial Average fell 0.5% to 23,422.21, the Standard & Poor's 500 index was down 0.21% to 2582.30, and the Nasdaq Composite slipped 0.2% to 6750.94.

Palace Intrigue

In an anti-corruption crackdown, Saudi Crown Prince Mohammed bin Salman rounded up more than five dozen princes. The government aimed to take control of up to $800 billion of assets in the crackdown. Oil spiked on the news, ending the week at $56.74 a barrel, up 1.98%. The Saudis also charged Iran with an "act of war" when a missile was fired at the capital from Yemen.

The Dems Have It

Democrats captured the governorships of Virginia and New Jersey, in a rebuke to President Donald Trump. Democrats ran up large pluralities in suburban areas.

China Deals

Trump's trip to China was said to net $250 billion in deals for U.S. companies, in the form of memorandums of understanding.

Deadly Shooting in Texas

A 26-year-old man who had been convicted in an Air Force court martial opened fire on a church in rural southeastern Texas, killing 26 people, including young children. The shooter killed himself after a car chase. Police speculated that the man, who had served military detention for assaulting his first wife and infant stepson, was embroiled in a dispute with his second wife's parents.

AT&T's Deal in Focus

The CEO of AT&T said he is prepared to go to court to win Department of Justice approval for the telecom giant's proposed $85 billion takeover of Time Warner . At a conference, Randall Stephenson refuted a story that he was considering selling CNN to get the deal approved.

It's a Snap

Shares of Snap plunged after it said its quarterly loss more than tripled. Snap disclosed that China's Tencent Holdings recently bought a 12% stake in the company.

One Big Merger

Broadcom offered $70 a share, or a total of $103 billion, to take over Qualcomm . The cash-and-stock deal was a 28% premium over Qualcomm's pre-bid price. A Qualcomm spokesman declined to comment.

In Brief

-- Activist William Ackman lost his bid for three seats on Automatic Data Processing's board.

-- Walt Disney held talks to buy assets of Twenty-First Century Fox .

-- Merger talks between Sprint and T-Mobile US collapsed.

-- New York Fed President William Dudley will retire next year -- early.

He Said:

"China will not close its doors. It will open them even wider." Companies will see China's market as "more open, more transparent, and more orderly."

Chinese President Xi Jinping, at a news conference with Trump

The Numbers

The National Association of Realtors produces a median sales price for single-family homes.

$246,800: Recent price, September 2017

$265,500: Peak, June 2017

$154,600: Recent low, January 2012

$230,900: Distant peak, July 2006

$19,700: 50-year low, March 1968

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(END) Dow Jones Newswires

November 11, 2017 06:00 ET (11:00 GMT)

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