5 Best-Performing Stocks Of November

Additionally, sales of new single-family houses in the United States increased 6.2% to a seasonally adjusted annual rate of 685,000 in October. This marks the biggest percentage gain since January 1992. 

Further, existing homes sales rose 2% in October from September to a seasonally adjusted rate of 5.48 million. Meanwhile, pending home sales for the month of October increased 3.5%, surpassing the consensus estimate of 2% growth.

Q3 GDP Exhibits Highest Rate of Growth Since 2014

According to the second estimate from the Department of Commerce, the gross domestic product of the United States expanded at an astounding 3.3% in the third quarter of 2017. This also marks it fastest pace of growth since the third quarter of 2014.

Meanwhile, consumer spending, the biggest contributor to economic growth advanced 2.3% in the 3Q17. Further, spending on business equipment shot up 10.4% in the period, also notching up a three-year high. Meanwhile, corporate pre-tax profits have surged 5.4% year over year.

Unemployment Hits 17-Yr Low, Job Additions Rise

The United States created 261,000 jobs in October, which came as a breather after only 18,000 job additions in September. Employment in key sectors like food services and drinking places, and professional and business services contributed to last month’s job creations. Employment in food services and drinking places created 89,000 jobs in October, after losing 98,000 jobs in September. Also, professional and business services added 50,000 jobs. However, October’s job additions were below the consensus estimate of 297,000 job additions.

Additionally, average hourly wages remained mostly flat in October, which came lower than the consensus estimate of a gain of 0.2%. Meanwhile, in October the unemployment rate came down from 4.2% to 4.1%, lower than the consensus expectation of 4.2%. This is the lowest pace recorded since December 2000.

Two Versions of New Tax Bill Emerge

On Nov 2, Republicans of the House finally unveiled a detailed tax cut policy under the Tax Cuts and Jobs Act which seeks to reduce corporate and revoke the taxes paid by large businesses. The tax bill reduces the corporate tax rate to 20%, making it the permanent rate.

On Nov 9, another version of the tax plan was released by the Senate Finance Committee. The Senate version differed from that of the House panel's in several ways. For instance, unlike the House Republicans’ tax proposals which focus on reducing corporate tax rate from 35% to 20%, the Senate version supports a similar tax cut only by 2019.
Such a confused state of affairs dampened investor sentiment. Moreover, market watchers speculated that no formal decision was likely on the tax Bill before Thanksgiving. Such fears weighed heavily on the broader markets.

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