The stock market is surging with about 24-hours until the GOP voting begins and presumably passing the first major overhaul of taxes in the United States in 31 years.  Homebuilder confidence soared to a reading of 74 against a consensus of 70, lifting the gauge to its highest level since July 1999.

• Midwest +6 points to 69
• South +3 points to 72
• West +2 points to 79
• Northeast +1 to 54

Key Components

• Current Sales +4 points
• Expectations +3 points
• Traffic +8 points

Traffic is the part of the report that correlates to consumer confidence.  This is the highest level of potential buyer traffic since a 59 reading in December 1998.

"Housing market conditions are improving partially because of new policies aimed at providing regulatory relief to the business community.” NAHB Chairman Granger MacDonald said.

I continue to think the naysayers have dramatically underestimated the impact of fewer regulations, which were strangling the economy.  

The major indices are all on up big today, with the Russell 2000 leading the way, up 1.2%. At midday, stocks are at the highs of the day and investors are optimistic the GOP plan is a done deal.  Advancers are leading decliner 2150/766 on the NYSE and 1963/920 on the Nasdaq. Energy, Financials, Materials and Telecom Services are strong today, while Consumer Staples, Health Care, Real Estate and Utilities lag.