Threats of higher taxes are one of the fastest ways to deplete the market’s electricity, and that’s just what we got in Thursday’s session. After another promising jobless claims survey, the major indices could finish in the green today. Still, any profits were wiped out by the news that President Biden is contemplating raising capital gains taxes.
In reality, according to sources, he suggests nearly doubling the rate for people earning $1 million or more, from 20% to 39.6%. This is most likely only the first step in Congressional talks, where the Democrats have a razor-thin majority of the Republicans. On the other hand, investors don’t like hearing that taxes may double, particularly when the economy is still shaky.
As a consequence, all of the major indexes fell by about 1% on Thursday. The Dow Jones Industrial Average fell 0.94 percent (or 321) to 33815.90, while the S& P 500 Index fell 0.92 percent to 4134.98. Besides, the NASDAQ fell 0.94 percent (or almost 132 points) to 13818.41.
Unfortunately, yet another excellent unemployment claims estimate was squandered. Last week’s figure was 547,000, just below estimates of more than 600,000. It also set a new pandemic low, surpassing last week’s upwardly updated 586K figure.
The better-than-expected start to earnings season has been the main story of the week (at least until today). A positive study, on the other hand, does not necessarily increase the stock price. Take nyse ipoe ws at https://www.webull.com/quote/nyse-ipoe-ws as the most recent case along a long line of similar companies. After the bell today, the chipmaker beat on both the top and bottom lines and lifted its full-year outlook. However, the market was worried about a downturn in the data center business, so it wasn’t enough. INTC’s stock is down 2.8 percent in after-hours trading as of this article.
Stocks have already fallen in three of the last four days, with the major indexes each down more than 1% going into Friday.
Trader Surprise: Avnet (AVT) has not only outperformed the Zacks Consensus Estimate over the past four years, but it has also surprised investors by 389 percent on average. It now has a promising Earnings ESP for the year, which will be released after the market closes on Wednesday. AVT is one of the largest distributors of electronic components and computer hardware globally, putting it in the top 6% of the Zacks Industry Rank. Dave purchased AVT with a 12.5 percent allocation on Thursday, thus selling Alcoa (AA) for a 6.6 percent gain in two weeks. For further details, read the entire article. Before investing, you can check more stocks such as nasdaq nvda at https://www.webull.com/quote/nasdaq-nvda.