STOCKS CLIMB: Here’s what you need to know

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Win McNamee / Staff

Stocks climbed late in the afternoon, with the Dow closing at a new high. Earlier, Trump announced his decision for Jerome Powell to replace Janet Yellen as Fed Chair and the GOP finally unveiled its massive tax plan.

First up, the scoreboard:

    Dow: 23,516.26, +81.25, (+0.35%) S&P 500: 2,579.85, +0.49, (+0.02%) Nasdaq: 6,714.94, -1.59, (-0.02%)

1. Trump chooses Jerome Powell to replace Janet Yellen as Fed Chair. Powell is seen as a relatively safe, Wall Street-friendly choice at a crucial time for the central bank. The Fed has begun the process of raising interest rates from post-recession lows and is unwinding its massive asset-buying program – a response to the financial crisis a decade ago.

2. House GOP leaders on Thursday unveiled the “Tax Cuts and Jobs Act,” which includes a broad set of proposed changes to the corporate and individual tax systems.

    House Ways and Means Committee Chair Kevin Brady, the author of the tax bill, said the bill would add $1.51 trillion to the federal deficit over the next 10 years. The Senate is set to use the process known as budget reconciliation to move the bill and avoid a Democratic filibuster.Brady, House Speaker Paul Ryan, and other House GOP leaders touted the bill in a press conference on Thursday and argued it would save the average family of four $1,182 a year on their taxes. Here’s how your tax bracket may change under the new tax plan, in one chart.

3. The tax plan has the real-estate industry in a panic and talking about housing recessions. The plan would cap the mortgage-interest deduction – which allows homeowners to subtract interest payments from their taxable income – on new homes at $500,000. This could dampen the benefit of the deduction outside of the most expensive housing markets and may lower home values. “We’re worried about a national housing recession,” Jerry Howard, the CEO of the National Association of Home Builders, a lobbying group based in DC, told Business Insider.

4. A part of the new tax plan will be tough sell for Republicans in New Jersey, New York, and California. The bill proposes the elimination of the state and local tax (SALT) deduction, which is a benefit that allows people to deduct those taxes from their federal bill. This is a hangup for Republican representatives in districts that benefit from the deduction.

5. The companies most likely to benefit from the tax plan surged. These companies can be broken into two main groups: (1) Those who pay the most taxes, and would, therefore, benefit most from a cut, and (2) those with the most cash stashed overseas and would see a huge windfall from a proposed one-time repatriation tax holiday.

Diving deeper into the new tax bill:

In other market news:

Bitcoin passes $7,300.

Alibaba surged after beating on earnings and boosting its outlook for the year.

Facebook said Thursday that it’s looking into calls to cut off the far-right website Breitbart from its ad network.

We keep hearing that billionaire hedge funder Steven Cohen has been crushing it recently – and just at the right time.

Bridgewater, the world’s largest hedge fund, faces a race against time to avoid a loss in its biggest strategy.