Holding up. U.S. stocks have managed to stay in the black on Wednesday, after surging over 1% Tuesday. Investors are focusing on signs of progress in U.S.-China trade talks, and the prospect that a U.S. government shutdown may be averted. Teva Pharmaceutical Industries (ticker: TEVA) and TripAdvisor (TRIP) fell after reporting disappointing earnings. In today’s After the Bell, we…
look into the impact of a smaller tax-refund check; examine the latest inflation data; and wonder what companies can get away with the rising wage pressure.
A Smaller Check
All three major indexes ended with gains. The Dow Jones Industrial Average gained 117.51 points, or 0.46%, to end at 25,543.27. The S&P 500 rose 8.30 points, or 0.30%, to close at 2753.03, and the Nasdaq Composite gained 5.76 points, or 0.08%, to end at 7420.38.
President Donald Trump said yesterday that he doesn’t want another shutdown and will likely sign a deal with the Democrats to prevent that from happening. Chinese President Xi Jinping will reportedly meet the U.S. delegation in Beijing on Friday. If confirmed, that would be a sign of goodwill to move forward with the trade negotiations between the world’s two biggest economies.
Early data from the Internal Revenue Service indicates that the average tax refund in 2019 is down 8% from the same period last year, as the tax code changes have resulted in the loss of some deductions and less withholding from the paychecks. There is also a 24% decline in the number of refunds processed to date, largely due to delay caused by the partial government shutdown in January.
Investors are worried that smaller refund checks could cut back consumer