Dow Jumps 150 Points, Adds To Record High Despite Threat Of Increased Taxes


The broader market is tacking on to its recent highs on Monday as recently embattled industries raise their revenue expectations in light of reinvigorated consumer demand, but as fiscal spending ramps up for President Joe Biden’s green infrastructure agenda, experts say stocks may be underestimating the impact of expected tax hikes.

Key Facts

Shortly after the market open, the Dow Jones industrial average, which closed at a record high Friday, jumped 147 points, or 0.4%, while the S&P 500, also fresh off its peak, ticked up 0.1%, and the tech-heavy Nasdaq fell about 0.1%.

Cyclical stocks in industries hard-hit by the pandemic are among those leading the market Monday: Southwest Airlines is up 2% on improved revenue guidance thanks to an uptick in leisure passenger bookings (largely to beach and other “nature-inspired” destinations), and Jet Blue is up 4% after similarly raising guidance.

Other stocks outperforming early Monday include fertilizer giant Mosaic, up nearly 5%, MGM Resorts 3%, and commercial real estate investment firm CBRE 3%.

Heading up losses in the S&P, Eli Lilly shares are slipping 7% after the drugmaker reported phase 2 clinical trial results for an Alzheimer’s drug that fell short of Wall Street expectations, with the firm concluding that longer and larger trials are necessary to study the drug’s efficacy.

On the deal front, Rogers Communications said it will acquire fellow Canadian telecom Shaw Communications in a deal that values the latter at approximately $16 billion, roughly 70% more than the firm’s recent market capitalization.

Global stocks, meanwhile, are mixed: Shanghai’s SSE Composite closed down 1%, while the United Kingdom’s FTSE 100 and France’s CAC 40 have each tick up about 0.1%.

Crucial Quote 

“The only wrinkle in the market concerns taxes,” Vital Knowledge Media Founder Adam Crisafulli said Monday morning, citing reports about Biden’s next fiscal plan, which experts say will likely be paid for with tax hikes. “Markets don’t seem prepared for the barrage of threats that’s about to come from the White House and congressional Democrats about taxes, but the big topic for the next 72 hours will be the Federal Open Market Committee meeting on Wednesday.” Crisafulli expects Federal Reserve chairman Jerome Powell will repeat most of his messaging from earlier this month, but adds that investors are anxious to see whether the Fed will at all signal a rate hike.

Surprising Fact

Electric-car maker Tesla, which has surged 23% in the past week after plummeting nearly 40% from a late-January high, filed a report with the Securities and Exchange Commission Monday, detailing that the titles of CEO Elon Musk and Chief Financial Officer Zach Kirkhorn “have changed to Technoking of Tesla and Master of Coin, respectively.” The stock is virtually flat Monday and up about 540% over the past year.


After surging more than 10% in the past week and landing a new record high above $61,000 on Sunday, bitcoin prices fell a sharp 6% Monday morning, falling below $55,000 at one point, after reports that India will propose a ban on cryptocurrency trading and mining.

What To Watch For

Earnings to watch this week include manufacturing giant Jabil on Tuesday morning and FedEx and Nike Thursday evening.

Further Reading

Here’s What We Know About Democrats’ ‘Big’ And ‘Green’ Multi-Trillion-Dollar Infrastructure Plan (Forbes)

Tesla CEO Elon Musk Has A New Title: ‘Technoking’ (Forbes)

Dow Jumps 200 Points To Record High After Biden Signs $1.9 Trillion Stimulus Package (Forbes)

Most Related Links :
todayprimenews Governmental News Finance News

Source link

Back to top button