U.S. stocks opened higher on news that House Republicans were proposing a second round of tax cuts to make lower individual rates permanent, to eliminate the maximum age for some retirement account contributions and to allow new businesses to write-off more of their startup costs. Only tech stocks and small-caps could hold their early gains as the S&P 500 and DJIA faded into market close.
Treasury yields opened higher on the same news but closed slightly lower on the day. Physical gold was flat, whereas the large gold miners failed to hold a weak technical level, which suggests prices on the large mining stocks are headed lower.
Agricultural commodities jumped this morning with little sign of sellers in the market. Sellers may be exhausted, or the hurricane headed towards the East coast could be the reason for higher agricultural commodity prices.
The big move today was in volatility as the VIX was once again crushed to the downside, but stocks didn’t react. When stocks don’t react to a big drop in volatility, its another sign liquidity is slowing draining from the markets.