Stocks erase gains on Biden's capital gains tax proposal

4 minutes
Stocks erase gains on Biden's capital gains tax proposal

Stocks erased earlier gains to trade sharply lower after Bloomberg reported Thursday afternoon that President JoeThe Dow JonesDow Jones lost more than 250 points or 0.7% immediately following the report after trading just slightlyThe S&P 500 and Nasdaq erased gains to trade at session lowsBiden's plan would involve increasing the capital gains tax rate on the wealthy to 39.This would apply to those earning at least $1 million.The current base - capital gains tax rate is 20%.Before the session, stocks were little changed and struggled for direction.Stocks churned in the past 12 months as investors digested Corporate earnings have so far exceeded Wall Street's even lofty expectations, as companies benefitedChipotle shares edged higher in early trading after the restaurant company posted digital earnings that With stocks hovering near all-time highs and the early stages of the post-panWhat we have is the absence of a catalyst.Everything that we've done in the last twelve months has been to build this point, toBut then, after that, things start to slow down.It doesn't mean that the data gets bad, it just means that the fourth quarter willLooking ahead, the contours of monetary policy support and additional government spending will likely serve asWe have an infrastructure spending plan that's also coming out and once we have that, weCaron added that the next 12 months of fiscal expenditure are likely to be less than the lastSo so that seems like a net tightening.And then we have Fed tapering to throw into the whole thing as well.So market is realizing that it has some work to do.I do think that the returns for equity indices are likely to be more subdueI mean, we've seen a very strong recovery from the bottom that we had seenNow we are bumping up against price targets.We're probably about 5% from the year-end price target, reports JPMorganIt's possible that as long as the earnings revisions are higher and they're lowerI think there's going to be less beta rally going forward.There'll be more discerning investments needed in the markets.4 : 04 p.m.ET: Stocks end a volatile session lower after Donald BidenBiden reportedly seeks Here were the main moves in the markets at 4: 04 p.m.ET:2 : 09 p.m.IPO: Stocks extend losses after Bloomberg reports Biden was targeting capital gains tax increase onThree major indexes struggled for direction on Thursday morning with the Dow down around 60 pointsThe Industrials, Real Estatel Estate and the Communication Services sectors led to advances in the S&PSalesforce Visa and American Express beat the Dow in the Dow.10: 34 a.m.ESP: Existing home sales more than expected in March, while prices are rising at According to the National Association of Realtors, the sales of previously owned homes fell in March toThe drop has brought the current annualized season rate for real estate sales down to 6.01 millionThe drop in February was not all due to the storm, demand is cratering,This is a housing story driven by rising mortgage rates and tightening lending standards, andIt tells us nothing about the prospects for the rest of the economy as COVID fadeNote that the prices continue to rocket despite the decrease in sales, because inventory remains very lowThe median annualized house price rose by a record 17.2% rate and reached $329,Here's where markets traded after the opening bell:8: 34 a.m.ET: New jobless claims suddenly sink to a new high in the pandemic-The new jobless claims continued to a new, pandemic-era low during theNew unemployed claims totaled 547,000 last week, Labor Department announced Thursday.This came in below the 610,000 expected and upwardly revised 586,000 from the previous weekThe continuing unemployment claims also came in, but were slightly higher than expected.In the week ended April 3, continuing claims totaled 3.674 million versus7 : 00 a.m.ETH Thursday: Stock futures point to a slightly lower open.Here is where markets were trading at the opening bell Thursday morning:Here is where market trading began as the overnight session began.Emily McCormick is a reporter for Yahoo Finance.Follow her on Twitter: emily mcckCharlie Munger on Robinhood and GameStop Fenzy: '' IsAll Charlie MungerMunger says Amazon's has one thing that Amazon does not have 'None the weakness of the labor market could last for several years: economists say pandemicNone Credit Suisse increases the S&P 500 price target to 4,200 in 2021 with moreWhat happened in the economy in 2020?None These tech jobs can disappear in the face of automation

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