Welcome to the first edition of The Bulls Market newsletter. I’m very excited to start this journey and I will do my best to keep you all informed. Let’s get to it!
Headlines
Here comes the Tax Man President Joe Biden is proposing to increase the capital gains tax rate for individuals making 1$ million or more to 39.6%, which bumps the federal tax rates for wealthy investors to as high as 43.4%. Read more here (BBG). Stocks paired gains to end the day following the news leak.
The Job market is on a roll, can it continue?Americans filing for unemployment benefits fell to a 13-month low of 547k from 586k on the previous reading (Reuters). The job market continues pacing its way to pre-pandemic levels, will it slow down? According to a recent poll on 500 economists, it just might (Poll).
Are small caps coming back? S&P600 small caps index had increased as much as 0.75% prior to the tax announcement before pairing back gains for the day. the small caps have been on a tear since the start of the pandemic until trading sideways for the past few months. Is the consolidation finally over? place your bets.
with no further due, the tale of the tape:
Tale of the tape
As of 4/22/21 close.
Markets
US Equity markets were on its way to post a 2nd straight day of gains led by the Russell 2000 (2%+ intraday) prior to the Capital Gains tax leak from @POTUS. Volatility (VIX) gained 7% to settle near 18.0 after making a new post-pandemic low of 16.25. Will we see more volatility or can the VIX stay under 20? We can only hope for the best!
China & Europe Equity markets posted gains and outperformed across the majority of its regions following a strong performance by global equities. The vaccine fueled reopening is sitting well with global equities and the momentum is finally shifting towards growth and riskier sectors
Earnings
Intel First quarter under new CEO Pat Gelsinger passed well above expectations beating on both bottom and top lines. Intel’s Data Center division posted weaker than expected profits which raised concerns regarding the company’s market share and the impact on its gross margins. Intel provided mixed Q2 guidance. (BBG)
Snap Q1 smashed expectations beating both revenue and user growth. Snap posted $769.6 million revenue with Daily Active Users (DAU’s) surpassing 280mm. The company continues its incredible run, up almost 600% off its pandemic 10$ low. (BBG)
Bank of America ($BAC) declared dividend a regular quarterly cash dividend on Bank of America common stock of $0.18 per share, payable on June 25, 2021 to shareholders of record as of June 4, 2021. (Businesswire)
Virtual Earth Day Summit surrounded by fellow world leaders, President Biden reiterated his commitment to cut U.S. greenhouse gas emissions by half by 2030. He also called on his counterparts to accelerate their own strategies on cutting emissions. Read more here (NYT)
Republicans Infrastructure Counter-offer Following Biden’s 2.3T proposal, the U.S. Senate Republicans have unveiled a $568 billion, 5 year infrastructure package as a counteroffer, encouraging some degree of bipartisanship by republican leaders.
The Superleague is off? Following the proposal ofhigh profile European clubs, Fans, players, and almost anyone not involved in exclusive list of clubs came out in backlash of the project stating there is a conflict of interest of those in charge to pursue this. Many clubs have already withdrawn from the project. Real Madrid’s Florentino Perez now faces uphill battle as the biggest proponent of the Superleague (NYT).
Increasing numbers of universities to require vaccination for students to be on campus (WSJ)
The Green Trade: Energy, Auto and Storage
Green energy stocks marched higher following the U.S commitment to reduce gas emissions. Proposal of taxes by Biden will be a way to pay for the tax incentives that will be provided to companies for the major green/clean energy overhaul planned for the U.S (NYT)
Around the time of the summit (1pm ET) shares of FuelCell Energy jumped 6.7% to $9.92, while SolarEdge moved up 7.5% to $274.09, and Enphase gained 6.4% to $165.06. (TheStreet)
By observing our green energy basket, there is relative strength of outperformance of some of the stocks that seem to be winners in Biden’s infrastructure proposal and overall gas emission cut commitment. This sector is still well of its Feb 21’ highs.
Happy Earth Day and... taxes?
Happy Earth Day and... taxes?
Happy Earth Day and... taxes?
Good Afternoon,
Welcome to the first edition of The Bulls Market newsletter. I’m very excited to start this journey and I will do my best to keep you all informed. Let’s get to it!
Headlines
Here comes the Tax Man President Joe Biden is proposing to increase the capital gains tax rate for individuals making 1$ million or more to 39.6%, which bumps the federal tax rates for wealthy investors to as high as 43.4%. Read more here (BBG). Stocks paired gains to end the day following the news leak.
The Job market is on a roll, can it continue? Americans filing for unemployment benefits fell to a 13-month low of 547k from 586k on the previous reading (Reuters). The job market continues pacing its way to pre-pandemic levels, will it slow down? According to a recent poll on 500 economists, it just might (Poll).
Are small caps coming back? S&P600 small caps index had increased as much as 0.75% prior to the tax announcement before pairing back gains for the day. the small caps have been on a tear since the start of the pandemic until trading sideways for the past few months. Is the consolidation finally over? place your bets.
with no further due, the tale of the tape:
Tale of the tape
As of 4/22/21 close.
Markets
US Equity markets were on its way to post a 2nd straight day of gains led by the Russell 2000 (2%+ intraday) prior to the Capital Gains tax leak from @POTUS. Volatility (VIX) gained 7% to settle near 18.0 after making a new post-pandemic low of 16.25. Will we see more volatility or can the VIX stay under 20? We can only hope for the best!
China & Europe Equity markets posted gains and outperformed across the majority of its regions following a strong performance by global equities. The vaccine fueled reopening is sitting well with global equities and the momentum is finally shifting towards growth and riskier sectors
Earnings
Intel First quarter under new CEO Pat Gelsinger passed well above expectations beating on both bottom and top lines. Intel’s Data Center division posted weaker than expected profits which raised concerns regarding the company’s market share and the impact on its gross margins. Intel provided mixed Q2 guidance. (BBG)
Snap Q1 smashed expectations beating both revenue and user growth. Snap posted $769.6 million revenue with Daily Active Users (DAU’s) surpassing 280mm. The company continues its incredible run, up almost 600% off its pandemic 10$ low. (BBG)
Full U.S Earnings Calendar (Here)
Corporate News
Bank of America ($BAC) declared dividend a regular quarterly cash dividend on Bank of America common stock of $0.18 per share, payable on June 25, 2021 to shareholders of record as of June 4, 2021. (Businesswire)
Virtual Earth Day Summit surrounded by fellow world leaders, President Biden reiterated his commitment to cut U.S. greenhouse gas emissions by half by 2030. He also called on his counterparts to accelerate their own strategies on cutting emissions. Read more here (NYT)
Republicans Infrastructure Counter-offer Following Biden’s 2.3T proposal, the U.S. Senate Republicans have unveiled a $568 billion, 5 year infrastructure package as a counteroffer, encouraging some degree of bipartisanship by republican leaders.
The Superleague is off? Following the proposal of high profile European clubs, Fans, players, and almost anyone not involved in exclusive list of clubs came out in backlash of the project stating there is a conflict of interest of those in charge to pursue this. Many clubs have already withdrawn from the project. Real Madrid’s Florentino Perez now faces uphill battle as the biggest proponent of the Superleague (NYT).
Increasing numbers of universities to require vaccination for students to be on campus (WSJ)
The Green Trade: Energy, Auto and Storage
Green energy stocks marched higher following the U.S commitment to reduce gas emissions. Proposal of taxes by Biden will be a way to pay for the tax incentives that will be provided to companies for the major green/clean energy overhaul planned for the U.S (NYT)
Around the time of the summit (1pm ET) shares of FuelCell Energy jumped 6.7% to $9.92, while SolarEdge moved up 7.5% to $274.09, and Enphase gained 6.4% to $165.06. (TheStreet)
By observing our green energy basket, there is relative strength of outperformance of some of the stocks that seem to be winners in Biden’s infrastructure proposal and overall gas emission cut commitment. This sector is still well of its Feb 21’ highs.
Green Energy Basket
On Next Edition: Sports Betting: US Sports Craze
source #1: Twitter @NFL_memes