What you need to know on Wall Street today

FILE PHOTO: Traders work on the floor of the NYSE in New York

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FILE PHOTO: Traders work on the floor of the NYSE in New York
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Thomson Reuters

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To hear detractors of Republicans’ tax bill tell it, the plan as written wouldn’t actually boost economic activity. These skeptics think corporations will simply use the excess capital from tax cuts to buy back their own shares.

And that’s not too far-fetched of an idea. After all, buybacks have swelled during the 8-1/2-year equity bull market, and stock gains have followed in spades.

But AQR Capital Management, the quantitative hedge fund that manages $208 billion, doesn’t buy it. The firm thinks buybacks are misunderstood – and don’t directly drive much share appreciation at all.

Elsewhere in investing news, BlackRock’s $1.7 trillion bond chief says don’t fear the Fed. And the bull market has plenty of “gas in the tank,” according to Bank of America.

In deal news, shopping mall owner Westfield sold itself for $15.7 billion. And Disney and 21st Century Fox are climbing as a report says a deal for assets is coming Thursday.

In crypto news:

Lastly, we drove the $120,000 Porsche 911 Carrera GTS to see if it was worth the price – here’s the verdict.