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U.S. stock markets closed lower on Thursday following reports that President Joe Biden is planning to almost double the capital-gains tax. Moreover, investors continued to monitor the progress of President Biden’s proposed infrastructure spending plan. All the three major stock indexes closed the day in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.9%, or 321.41 points, closing at 33,815.90, reversing its gains from the previous session. Notably, 26 components of the 30-stock index ended in red while 4 finished the day in green.
Moreover, the tech-heavy Nasdaq Composite closed the day at 13,818.41, down 0.9%, or 131.80 points, snapping its gains from Wednesday, on the back of weak performance by large-cap technology stocks. Shares of heavy-weight technology stocks like Facebook, Inc. , Microsoft Corp. (MSFT - Free Report) and Alphabet Inc. (GOOGL - Free Report) fell 1.6%, 1.3% and 1.1%, respectively. Notably, Microsoft carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, the S&P 500 dipped 0.9%, closing the day at 4,134.98 points, giving up its gains from Wednesday. The Materials Select Sector SPDR (XLB) and the Energy Select Sector SPDR (XLE) dipped 1.7% and 1.2%, respectively. Notably, all eleven sectors of the benchmark index closed in the negative zone.
The fear-gauge CBOE Volatility Index (VIX) was up 6.9% to 18.71. A total of 10.35 billion shares were traded on Thursday, higher than the last 20-session average of 10.32 billion. Decliners outnumbered advancers on the NYSE by a 1.57-to-1 ratio. On Nasdaq, a 1.04-to-1 ratio favored declining issues.
Reports of President Biden’s Planned Capital Gains Tax Hike Moved Wall Street Lower
Wall Street moved lower to end in the red in Thursday’s session, witnessing its biggest one-day dip since early-March, following news reports that President Joe Biden is planning to increase capital-gains tax rate for Americans who are earnings more than $1 million per year to 39.6%, from the current base rate of 20%. Moreover, when combined with the existing surtax on investment income, the federal tax rates for the wealthiest investors could reach to as high as 43.4%.
Investors Continued to Observe the Progress of President Biden’s Infrastructure Plan
Market participants also remained watchful of the progress of President Biden’s proposed infrastructure plan. Per the latest developments, on Thursday, the Republican party put forward its counteroffer to Biden’s infrastructure plan.
Notably, Senate Republicans proposed a package that would cost $568 billion which includes funding for roads and bridges, broadband, public transit, and so on and does not include increase in taxes.
Economic Data
The U.S. Department of Labor reported that initial jobless claims declined by 39,000 to 547,000 for the week-ended Apr 17. The consensus estimate was 621,000 and previous week’s data was revised upward by 10,000 to 586,000 from 576,000 reported earlier.
Continuing claims (people who are already receiving benefits) declined by 34,000 to 3,674,000 for the week ended Apr 10 from the prior week’s revised level. Notably, this is the lowest level for continuing claims since March 21, 2020 when it was reported at 3,094,000. The previous week’s level was revised downward by 23,000 to 3,708,000 from 3,731,000 reported earlier. The four-week moving average for continuing claims dropped by 41,750 to 3,713,000. Notably, this marked the lowest level for the average since March 28, 2020 when it was 3,611,750. The prior week’s average was revised downward by 8,250 to 3,754,750 from 3,763,000 reported earlier.
The National Association of Realtors reported that existing home sales in March fell 3.7% to a seasonally adjusted annual rate of 6.01 million units, compared to 6.24 million in February which was revised upward from 6.22 million reported earlier, and missing the consensus estimate of 6.14 million.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Stock Market News for Apr 23, 2021
U.S. stock markets closed lower on Thursday following reports that President Joe Biden is planning to almost double the capital-gains tax. Moreover, investors continued to monitor the progress of President Biden’s proposed infrastructure spending plan. All the three major stock indexes closed the day in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.9%, or 321.41 points, closing at 33,815.90, reversing its gains from the previous session. Notably, 26 components of the 30-stock index ended in red while 4 finished the day in green.
Moreover, the tech-heavy Nasdaq Composite closed the day at 13,818.41, down 0.9%, or 131.80 points, snapping its gains from Wednesday, on the back of weak performance by large-cap technology stocks. Shares of heavy-weight technology stocks like Facebook, Inc. , Microsoft Corp. (MSFT - Free Report) and Alphabet Inc. (GOOGL - Free Report) fell 1.6%, 1.3% and 1.1%, respectively. Notably, Microsoft carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, the S&P 500 dipped 0.9%, closing the day at 4,134.98 points, giving up its gains from Wednesday. The Materials Select Sector SPDR (XLB) and the Energy Select Sector SPDR (XLE) dipped 1.7% and 1.2%, respectively. Notably, all eleven sectors of the benchmark index closed in the negative zone.
The fear-gauge CBOE Volatility Index (VIX) was up 6.9% to 18.71. A total of 10.35 billion shares were traded on Thursday, higher than the last 20-session average of 10.32 billion. Decliners outnumbered advancers on the NYSE by a 1.57-to-1 ratio. On Nasdaq, a 1.04-to-1 ratio favored declining issues.
Reports of President Biden’s Planned Capital Gains Tax Hike Moved Wall Street Lower
Wall Street moved lower to end in the red in Thursday’s session, witnessing its biggest one-day dip since early-March, following news reports that President Joe Biden is planning to increase capital-gains tax rate for Americans who are earnings more than $1 million per year to 39.6%, from the current base rate of 20%. Moreover, when combined with the existing surtax on investment income, the federal tax rates for the wealthiest investors could reach to as high as 43.4%.
Investors Continued to Observe the Progress of President Biden’s Infrastructure Plan
Market participants also remained watchful of the progress of President Biden’s proposed infrastructure plan. Per the latest developments, on Thursday, the Republican party put forward its counteroffer to Biden’s infrastructure plan.
Notably, Senate Republicans proposed a package that would cost $568 billion which includes funding for roads and bridges, broadband, public transit, and so on and does not include increase in taxes.
Economic Data
The U.S. Department of Labor reported that initial jobless claims declined by 39,000 to 547,000 for the week-ended Apr 17. The consensus estimate was 621,000 and previous week’s data was revised upward by 10,000 to 586,000 from 576,000 reported earlier.
Continuing claims (people who are already receiving benefits) declined by 34,000 to 3,674,000 for the week ended Apr 10 from the prior week’s revised level. Notably, this is the lowest level for continuing claims since March 21, 2020 when it was reported at 3,094,000. The previous week’s level was revised downward by 23,000 to 3,708,000 from 3,731,000 reported earlier. The four-week moving average for continuing claims dropped by 41,750 to 3,713,000. Notably, this marked the lowest level for the average since March 28, 2020 when it was 3,611,750. The prior week’s average was revised downward by 8,250 to 3,754,750 from 3,763,000 reported earlier.
The National Association of Realtors reported that existing home sales in March fell 3.7% to a seasonally adjusted annual rate of 6.01 million units, compared to 6.24 million in February which was revised upward from 6.22 million reported earlier, and missing the consensus estimate of 6.14 million.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>