All those who are looking to invest big in the Stock market when it opens on Friday must note these major pointers. These analyses and trends must come in handy to make an informed decision.
1. Corporate taxes are unlikely to hike, says Biden
After weeks of debates among the democrats, Biden finally sees a silver lining to pass a major infrastructural and social spending bill as per his announcement on Thursday. During the announcement, he also shed light on the corporate tax increase. He revealed that it is unlikely to increase, instead a proposal for minimum corporate tax is already filed, which can fund more social programs. However, negotiations regarding some issues at hand are still under talk. Apart from this, he has refused to give out more details on the matter.
Biden’s affirmation of corporate tax unlikely to hike will prove fruitful for the investors when the stock market opens on Friday.
The chip-maker announced on Friday that it has lost 2% of its business due to a global shortage of components that it needs to build the chips. Moreover, 10% stocks of the company plunged in the morning in Friday’s premarket. Intel has also announced that it may see a plunge in gross margin and free cash flow for the next 2 to 3 years as the company has decided to invest in research and development to build new chip factories.
Pfizer has announced that with 91% efficacy the kids-sized doses are certain to prevent the kids from Covid-19 infection. The doses can be given to the kids in the next month after the FDA reviews the effectiveness data submitted by the company. However, booster doses for Moderna and J & J vaccines were approved along with the approval of the mix and match program.
This Friday, the US stock futures have shown a mixed response as the tech stocks remain under pressure whereas 10-year Treasury yield witnessed growth (its highest since May) which traded for over 1.69% before rolling back some. The three benchmarks including S&P 500, the Nasdaq, and the Dow Jones Industrial Average also showed mixed performance. The S & P 500 continued its winning streak and closed at its highest, whereas the Nasdaq also closed just 1% away from its September mark showing some advances. However, Dow Jones for the first time in its three sessions closed lower but all three benchmarks have demonstrated good weekly gains.