Taxes, Taxes, Taxes...Still Weighing on S&P 500


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  Dow and S&P 500 at Tipping Point

Stocks jumped higher at the opening bell this morning on news that the Obama White House and the U.S. Congress have come to an agreement on what to do with U.S. tax policy. It looks like the Bush-era tax rates will be with us for a few more years and that we will also be seeing a 13-month extension of unemployment benefits.

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This announcement was great news for Wall Street for two reasons. First, it removed a lot of uncertainty from the market. Traders hate uncertainty, and not know what tax rates were going to be come January 1 was causing quite a lot of stress. Second, it left tax rates low -- which high-paid traders on Wall Street are extremely excited about. This means there will not be so much pressure to try and sell out of winning positions before the end of the year just to take advantage of the lower tax rates.

Unfortunately the bloom on the rose didn't last too long. What happened?

Here are a few of the topics and stocks we discussed in today's Ask the Expert video.

- Wall Street ready to be bullish on extended tax cuts
- Fitch warns U.S. it could lose its AAA rating.
- Citigroup ( C )
- 3M Company ( MMM )
- Du Pont ( DD )
- And much, much more

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[hdplay videoid=244 height=360 width=640 autoplay=false]
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Image Courtesy of alancleaver_2000

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: C , DD , MMM

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