Closing Market Report 2/13/2018

The KUIK Closing Market Report for Tuesday, February 13:

Markets were up.

Index

Direction

Change

Units

Index

Time

Change

Dow

Up

                    39

 points

        24,640

2:43 PM

S&P500

Up

0.3%

percent

          2,663

       1.38

Nasdaq Composite

Up

0.5%

percent

          7,014

       9.00

30 Year Treasury

Down

                     (1)

Basis Points

           3.13

Annual Yield

The U.S. Treasury expects to pay $5.1 billion to prop up Fannie Mae  and Freddie Mac in 2018, according to budget documents released Monday. It was expected. Congress directed the mortgage finance giants to eliminate the amount of capital they held and send quarterly balances to Treasury. With their capital down,  the new tax law changes made the likelihood of a Treasury draw a certainty, as both enterprises took a hit from holding billions of dollars of deferred tax credits on their balance sheets. Since the corporate tax rate has been cut, the value of those credits falls.

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www.marketwatch.com/story/heres-what-else-tax-reform-means-another-bailout-of-fannie-and-freddie-2017-12-05

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