Business & Investment

This is a catalyst that can shift market debate from selling news to buying dips.

Two things are clear during this earnings season.

First, the first quarter earnings are outstanding. According to a Credit Suisse analysis conducted by 85% of S & P 500 companies, 86% were above expectations, the financial sector was above 34%, and the rest of the market was above 19%. Earnings per share are projected to grow 47% with 10% earnings growth.

Second, investors are not impressed. Bank of America’s analysis on Monday lacked last week’s results, so companies that won both sales and EPS the next day were just 16 basis points above the S & P 500, a historical average of 151. It is well below the basis point.

Louis Navellier, founder and chief investment officer of Navellier & Associates, said the Biden administration’s proposal to raise corporate taxes is hanging in the market.

“In the discussion of the short-term outlook for the market, Goldilocks catalysts are influenced by how future corporate taxes are structured. After all, Super PAC [political action committees] Weighted, the new corporate income tax rate is likely to be around 25%. ” “As the tax debate becomes clearer, we’re looking for a story to quickly move from’selling news’to’buying dips’,” he writes.

S & P 500
SPX,
+ 0.82%

Naverier said corporate taxes could reach 4,600 by the end of the year if they were negotiated at lower levels, as Credit Suisse is aiming for.

That view has gained some support from what President Joe Biden himself said. Talking Thursday in Louisiana to promote his infrastructure bill, Biden loudly proposed 25% as the number he would accept.

He pointed out before commenting that the Obama administration had proposed reducing the corporate tax rate to 35% at the time, but not to the 21% that Congress had placed under the Trump administration. Biden said it was important for large companies not to pay zero, adding: According to the records released by the White House, we can pay for these things, “Biden said.

Biden’s current plan calls for a corporate tax rate increase from 21% to 28%.

All eyes on salary

Expectations For a powerful April job reportAn economist surveyed by The Wall Street Journal and Dow Jones Newswire predicts that one million non-farm jobs will be created and the unemployment rate will drop from 6% to 5.8%.

Tom Porcelli, Chief US Economist at RBC Capital Markets, said: 1.1 million profits. “Given that the economic situation now seems to be evolving rapidly, this cannot be completely discounted. No doubt, we are absolutely not trying to hide our phone. Instead, I think this question provides an opportunity for prospects. Whether or not profits are much stronger than expected, the turnaround of those sitting on the sidelines will be in full swing over the next few months. Seems ready to continue. “

Federal Reserve Financial Stability Report warned that asset prices could be vulnerable to significant declines — A warning similar to the one issued by the central bank in November.

Optimistic financial outlook could lift Peloton Interactive
PTON,
+ 1.40%
,
The treadmill recall will bring fourth-quarter sales to approximately $ 165 million. Cyber ​​security company Cloudflare
Net,
-12.59%

Reported stronger earnings than expected.

Terra Dock Health
TDOC,
-3.24%

Pressure can be applied after retailing a huge Wal-Mart
WMT,
+ 0.71%

We have agreed to purchase MeMD, a telemedicine provider.

City
C,
+ 1.45%

I’m considering starting a cryptographic service, The Financial Times reported.

US Equity Futures Prior to Release of Salary Report
ES00,
+ 0.23%

NQ00,
+ 0.27%

Rising, 10-year government bond yields
TMUBMUSD10Y,
1.579%

It was 1.57%.

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This is a catalyst that can shift market debate from selling news to buying dips.

http://www.marketwatch.com/news/story.asp?guid=%7BF9533BBE-915D-4E6B-84AC-3AEC51B04E20%7D&siteid=rss&rss=1 This is a catalyst that can shift market debate from selling news to buying dips.

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