Globally, earnings continue to be good. We were reminded of that today, with several very good earnings reports from Japanese Companies. Their markets responded favorably.

The S&P 500 has been up 19 of the last 25 Novembers and 20 of the last 25 Decembers (Source BTN).

The House Ways and Means Committee released its initial design of tax reform in early November. The Bill, officially HR#1, is called the Tax Cuts and Jobs Act.

Under TCJA, a couple filing jointly would pay no tax up to the new $24,000 standard deduction, then pay a 12% rate up to $90,000 of earnings; then a 25% rate up to $260,000 of earnings, and then a $35% rate up to $1,000,000 of earnings and finally a 39.6% rate for earnings above $1,000,000.

The Senate’s version is expected soon.