Tuesday was an absolute disaster, as the Dow sank 362 points.
But it didn’t take long for it to recover.
In fact, just hours after President Trump’s State of the Union, Dow futures were up 206 points thanks to an address full of assertions of a “new tide of optimism.”
“Over the last year, we have made incredible progress and achieved extraordinary success. We have faced challenges we expected, and others we could never have imagined. We have shared in the heights of victory and the pains of hardship. We endured floods and fires and storms. But through it all, we have seen the beauty of America’s soul, and the steel in America’s spine,” Trump said in his speech.
In fact, there are plenty of positives.
The U.S. economy is strong, and is expected to continue in 2018. Corporate profits have raced to all-time high. We’ve seen massive tax reform, which could fuel buybacks, dividends, and potential mergers and acquisitions.
In fact, the President even noted that Apple would bring back nearly all of its $250 billion tax-sheltered wealth back to the U.S. thanks to a friendlier tax rate.
“Since we passed tax cuts, roughly three million workers have already gotten tax cut bonuses. Many of them, thousands and thousands of dollars per worker and it’s getting more every month, every week. Apple has just announced it plans to invest a total of $350 billion in America, and hire another 20,000 workers.”
And, as widely expected, the President spoke of plans for a $1.5 trillion bipartisan infrastructure bill. This announcement alone is already serving as an incredible catalyst for related stocks, like U.S. Steel (X), U.S. Concrete (USCR) and Vulcan Materials (VMC).
According to CBS News:
“About 54,259 of the 612,677 bridges in the U.S. are “structurally deficient,” according to a report released by American Road & Transportation Builders Association this week. Americans cross these deficient bridges 174 million times a day. According to the infrastructure report, structurally deficient bridges are defined as safe to drive, but showing signs of age and decay, and in need of regular inspection – and the infrastructure problem is much bigger than just bad bridges…”
The President also spoke of wanting to offer a path of citizenship for 1.8 million young immigrants — but only as part of a package that would also seek funding for border security, including a wall along the U.S.-Mexico border, ending the nation’s visa lottery method and revamping the current legal immigration system.
Overall, Americans seemed to have approved the speech by wide margin.
In fact, 75% of Americans approved of what the President had to say.