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U.S. stocks gain as all three main indexes close at records
U.S. stocks extended gains again with all three main benchmarks closing at records as the Federal Reserve began its two-day policy meeting where they are expected to finalize the details on the unwinding of its $4.5 trillion balance sheet.
The Dow Jones Industrial Average rose 42 points, to end at 22,373, its sixth straight record finish, while the S&P 500 added 2 points, to 2,506, logging its fourth record close in a row. T
The Nasdaq Composite Index also ended at an all-time high, gaining 6 points, to close at 6,461.
The OTC Markets also appear to hold strong as investors don’t seem too hesitant to tray and capture lighting in a bottle as so many start up tech companies flash signs of being the next addition to the big boards.
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Why stock market investors shouldn’t sweat a shrinking Fed balance sheet
The Fed is widely expected to begin slowly unwinding the $4.5 trillion portfolio of bonds and other assets it accumulated via its asset purchase program in the wake of the financial crisis.
Now, after four rate increases, and with stocks at record highs, many investors are fretting whether the unwinding of the balance sheet will pressure the stock market.
Meanwhile, some economists argued that even incremental selling could be easily absorbed by the markets.
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Cryptocurrency Trading
Traders looking to bet on a bitcoin sell-off can go to bitcoin futures markets such as [OrderBook.net]( and sell bitcoin futures contracts. Of course, futures contract sellers must first own the bitcoin that they agree to sell and they're obligated to sell at the specified price no matter how profitable or unprofitable the contract ends up.
Prediction markets are very thinly-veiled online gambling sites that allow users to create their own personal wagers. If another user comes along and accepts a wager that bitcoin prices will fall, users could potentially profit if they win the bet. Predictions market Predictious claims to be “the premier Bitcoin prediction market.”
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White House To Ease International Firearm Trade
American gun manufacturers boomed Tuesday on news that the Trump Administration would ease export policies on non-military firearms.
The White House will soon submit a proposal to the budget office to shift regulation of international sales from the State Department to the Commerce Department, according to a Reuters report.
The latter’s interest in promoting U.S. trade should yield favorable sales conditions relative to those fostered by the State, whose priority is to mitigate global threats.
Still, any transition will be buffered by the National Security Council, which will “ensure that U.S. industries have every advantage in the global marketplace.
Congress doesn't need to approve the transition, which could take effect as soon as the first half of 2018. American Outdoor Brands Corp (AOBC) popped 11.4 percent and Sturm Ruger & Company Inc (RGR) 13 percent in the minutes following the report.
“There will be more leeway to do arms sales,” one senior administration official told Reuters. “You could really turn the spigot on if you do it the right way.”
Kind regards,
Kevin Smith
Chief Editor, Market Rising
Market Rising LLC.
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