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Last Friday's 2% intraday turnaround continued this past week. US equities gained 4% (from Alphatrends). Enlarge any chart by clicking on it.
A reduction in the corporate tax rate reduces the value of prior year losses used to offset future year profits (termed "deferred tax assets"). To take one example, Citigroup, which incurred great losses during the financial crisis, had to take a one-time non-cash charge of $22 billion in 4Q17. This is a rare case where non-GAAP numbers are more meaningful. Read more here.
The new "territorial" tax law requires a one-time "toll tax" on foreign income previously earned abroad. This tax has to be paid over the next 8 years. This only adversely impacts companies that had planned to keep their profits offshore forever (like American Express); companies that had already accounted for repatriating the money will end up doing so at a lower rate and thus generate an accounting profit (like Apple). Read more here.