US Market ends at new records

The US equity market finished session higher after fluctuating between small gains and losses on Friday, 14 February 2020, as investors' concerns about a sharp rise in coronavirus cases faded on Trump's tax incentive stimulus. At closing bell, the Dow Jones Industrial Average shed 25.23 points, or 0.09%, to 29,398.08, while the S&P 500 gained 6.22 points, or 0.18%, to 3,380.16. The Nasdaq Composite Index added 19.21 points, or 0.2%, to 9,731.18. For the week, the Dow advanced 1%, the S&P 500 1.6%, and the Nasdaq 2.2%. The stock markets will be closed Monday in observance of Presidents Day.

As per the report, the Trump admin is planning to incentivize U.S. households (retail investors) to invest in the stock market directly in a greater way and may exempt certain portion (say 10%) of the income-tax-free, if invested in the U.S. stock market directly. The White House may be considering certain another fiscal stimulus (tax cuts) as a part of Trumponomics 2.0 (Tax Cut 2.0).

The report suggested that under the tax cut for investing in U.S. stock market, a portion of household/individual income would be treated as tax-free in addition of regular 401(k) exemption-say, an individual/household earning up to $200K (annually) may invest $10K in the U.S. stock market directly on a tax-free basis. As per reports, presently, around 55% of U.S. households do invest in U.S. stocks market directly, which is lower by around 10% from the last 2008 pre-GFC period.

ECONOMIC EWS: Retail sales climbed 0.3% month on month in at the start of 2020, versus a downwardly revised 0.2% (previously 0.3%) in December, the Commerce Department revealed on Friday.

Industrial production, a gauge of output from factories, mines and utilities, fell 0.3% in January from the previous month, the Federal Reserve said on Friday.

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