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08:48 EDT Week in review: How Trump's policies moved stocks - Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Trump and his administration with this weekly recap compiled by The Fly: 1. BANKS AND CARDS: On Friday, Goldman Sachs (GS) reported that it estimates, based on currently available information, that the enactment of new federal tax legislation will result in a reduction of approximately $5B in the firm's earnings for the fourth quarter and year ending December 31, 2017. Approximately two-thirds of that is due to the repatriation tax, while the remainder includes the effects of the implementation of the territorial tax system and the remeasurement of U.S. deferred tax assets, the bank explained. That followed Barclays (BCS), which announced on Wednesday that it expects the measurement of its U.S. deferred tax assets to reduce by about $1.3B as a result of the reduced tax rate in the Tax Cuts and Jobs Act. The reduction in the measurement of deferred tax assets is expected to result in an associated one-off charge of the same amount to the bank's profit after tax, the U.K. banking giant reported. Also earlier this week, Capital One Financial (COF) said it estimates that the Tax Act will result in an approximately $1.9B charge against net income primarily due to the write down of its deferred tax assets, a one-time tax on the company's unrepatriated foreign earnings, and other anticipated impacts. Capital One expects to maintain its quarterly dividend of 40c per share, subject to approval by its board, though it also reduced the authorized repurchases of the company's common stock to up to $1B for the remaining 2017 CCAR period. In June, Capital One announced that its board had authorized the repurchase of up to $1.85B of the company's common stock beginning in the third quarter of 2017 through the second quarter of 2018. 2. SHELL: Meanwhile, Royal Dutch Shell (RDS.A) said it expects the potential economic impact of the recently enacted tax reform legislation to be favorable to Shell and to its U.S. operations, primarily due to the future reduction in the U.S. corporate income tax rate. However, on the basis of the third quarter financial statements, Shell would have incurred an estimated charge to earnings of $2B-$2.5B primarily driven by a re-measurement of its deferred tax position to reflect the lower corporate income tax rate, the energy major added. 3. WILLIS TOWERS WATSON: On Thursday, Raymond James analyst Gregory Peters told investors in a research note that the new tax legislation could increase Willis Towers Watson's (WLTW) effective tax rate by up to 200 basis points in 2018. As such, the board may lower the company's 2018 earnings per share target of $10.10 by up to 15c or more under the executive incentive compensation plan, Peters added. The analyst does not think management will "burn the furniture" to hit the minimum $10.10 earnings target for 2018. 4. HOMEBUILDERS: On Friday, Wedbush analyst Jay McCanless increased his price targets on homebuilders by an average of 13.6% to reflect the potential impacts from the new tax bill, though he noted that his estimates and targets could need to be adjusted as companies begin reporting earnings giving specific tax guidance. He made the largest target increases to PulteGroup (PHM), Century Communities (CCS) and Taylor Morrison (TMHC), he noted. Other publicly traded companies in the space include Beazer Homes (BZH), CalAtlantic (CAA), D.R. Horton (DHI), Hovnanian (HOV), KB Home (KBH), Lennar (LEN), M.D.C. Holdings (MDC) and Toll Brothers (TOL). "Week in Review" is The Fly's weekly recap of its recurring series of "Trump Effect" exclusive stories.
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