The market dipped on Thursday as House discussions regarding Trump’s tax reform bill hit their final day of negotiations. Part of the bill has been speculated to contain a large corporate tax cut from 35% down to 20%. The bill also has been rumored to contain a repatriation clause allowing companies to bring offshore profits back to the US for a one-time tax holiday. Companies use this extra cash to buy back shares, pay out special dividends, and reinvest into future core businesses. With that said, the market dip reveals a slight sense of skepticism on whether the bill will pass.

 

Saudi Arabian King Salman bin Abdulaziz Al Saud announced on Saturday the formation of an anti-corruption committee. One day later, over 200 people were detained, including 40 members of the royal family, and nearly $100 billion in assets were seized until further investigation. Among those arrested was Prince Alwaleed bin Talal, previously the world’s 50th richest man with significant holdings in global companies like Apple (AAPL). Shares in Talal’s Kingdom Holding Co. (4280) plunged following his arrest amounting to a personal loss of nearly $1 billion for the prince. Oil nearly hit its highest level in 2 years after the staggering news out of OPEC’s biggest supplier.

 

Earnings reports took a slight downturn this week as two of the year’s biggest IPO losers, Snapchat (SNAP) and Blue Apron (APRN), dropped significantly following their reports.Snapchat reported earnings far below expectations due to a 60% drop in advertising rates. Shares plunged over 20% following the news. Blue Apron beat revenue expectations but failed its report after it posted higher losses per share than expected and increased competition in the meal-kit industry. Shares fell over 13% following the news.  Snapchat and Blue Apron are slowly becoming the worst IPO’s in recent history.

 

The golden child of semiconductor stocks, Nvidia (NVDA), continued its strong year after posting better-than-expected earnings on Thursday. The company beat its EPS projection by over 40% as it continues to pace the historic rise of the chip industry. Rapunzl recently analyzed the industry’s meteoric rise, and Thursday’s earnings report only proves the growth will continue.

 

Trump spent the past week meeting with some of the most important leaders in Asia to discuss trade deals and ongoing responses to North Korea. The president traveled through Japan, South Korea, and China in an effort to re-negotiate fairer trade terms and stimulate more US exports to Asia. Trump also called on North Korea to “come to the table” with regard to negotiating the future terms of its country’s missile and nuclear programs.