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A Biden victory could weigh on stock market’s winners By Reuters

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© Reuters. U.S. Democratic presidential candidate and former Vice President Joe Biden campaigns in Johnstown

By David Randall

NEW YORK (Reuters) – Investors on Wall Street can add another layer of uncertainty to a market already unnerved by last month’s sell-off, stalled fiscal stimulus, and by President Donald Trump’s COVID-19 diagnosis, which weighed on stocks on Friday.

A higher capital gains tax that could accompany a win by Democratic presidential nominee Joe Biden is also emerging as a potential counterweight to this year’s powerful rally in stocks.

Biden has proposed https://br.reuters.com/article/uk-factcheck-biden-trump-proposed-taxes/fact-check-comparison-of-proposed-taxes-under-biden-and-trump-looks-at-highest-tax-bracket-only-idUSKBN2672GE taxing capital gains and dividends as ordinary income, which would increase the tax rate from 20% to 39.6% for individuals and couples earning over $1 million, the highest tax bracket.

That policy – which would likely be easier to enact if Democrats also win the Senate and retain control of the House – may push some investors to lock in gains ahead of December if Biden emerges the winner in the Nov. 3 vote, fund managers said.

Tax-motivated selling would likely be most pronounced in technology and other momentum stocks and could push the broad S&P 500 index lower between November and the end of the year, said Eddie Perkin, chief equity investment officer at Eaton Vance (NYSE:).

“If you have enough people looking to harvest gains, that has an impact on the stocks that have led the market, and the big tech stocks could be where people choose to sell at the end of the year,” he said.

On Friday, President Trump’s COVID-19 diagnosis triggered a sell-off in stocks and oil as investors moved away from risk assets. But many tech and momentum stocks are sporting healthy gains for the year despite a sell-off that pushed the S&P 500 down 3.9% in September, its first monthly loss since March.

Tesla Inc (O:), for instance, is up 423% for the year through Thursday, while Zoom Video Communications Inc (O:) is up 592% and Amazon.com Inc (NASDAQ:) is up 72%. The S&P 500 index as a whole is up 4.6% over the same time.

That kind of momentum may be difficult to slow, especially if it is aided by seasonal trends. November and December tend to be among the best months for stock performance, boasting an average gain of 1.34% and 1.57%, respectively, for the S&P 500, according to research firm CFRA.

“The third quarter is usually weak, but when it is really strong, like it was in 2020, this says the rally isn’t over yet,” explained LPL Financial (NASDAQ:) Chief Market Strategist Ryan Detrick.

Still, some believe a Biden victory would provide a strong incentive for profit-taking.

SELLING ‘AHEAD OF SCHEDULE’

Chris Cordaro, chief investment officer of RegentAtlantic, believes a broad Democratic victory will likely lead to more stock market volatility as soon as the results of the election are known as investors start selling winners.

He has been counseling some clients to move more income into this year as opposed to next year by taking money out of retirement accounts, which would add another layer of selling, he said.

“You’re going to see people selling things that they would be selling anyway, but ahead of schedule,” he said.

Investors in the coming week will be keeping an eye on minutes from the Federal Reserve’s most recent monetary policy meeting, due out Wednesday, for insight on how the central bank views the nascent recovery in the United States.

To be sure, higher taxes do not always lead to increased selling. Overall, the capital gains tax rate could go as high as 40% before having widespread effects on investor behavior and discouraging investment, according to a paper by Princeton University economics professors Owen Zidar and Ole Agersnap.

Personal income tax rates are more likely to affect the market’s winners this year, Cordaro said, while increased corporate taxes would most likely lower valuations across the stock market over the next year.

By 2024, however, enactment of Biden’s proposed tax measures and other policies would cut just 4% off of estimated earnings for the S&P 500 compared with baseline estimates, according to Goldman Sachs (NYSE:).

Increasing corporate taxes while the global economy is still trying to recover from the coronavirus pandemic could dent the rally in the stock market and cut into company plans to hire or invest in new projects by eating into after-tax net income, said

hedge fund manager J. Daniel Plants, who runs Voce Capital Management.

“History teaches us that this is the worst possible moment to subject the economy to the type of massive tax increases that Biden is proposing, especially the changes that would impede capital formation and make domestic job creation less attractive,” he said.





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France stocks lower at close of trade; CAC 40 down 1.53% By Investing.com

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France stocks lower at close of trade; CAC 40 down 1.53%

Investing.com – France stocks were lower after the close on Wednesday, as losses in the , and sectors led shares lower.

At the close in Paris, the lost 1.53%, while the index declined 1.55%.

The best performers of the session on the were Vivendi SA (PA:), which rose 1.57% or 0.39 points to trade at 25.25 at the close. Meanwhile, Renault SA (PA:) added 0.81% or 0.20 points to end at 24.39 and Publicis Groupe SA (PA:) was up 0.51% or 0.16 points to 31.31 in late trade.

The worst performers of the session were WFD Unibail Rodamco NV (AS:), which fell 5.11% or 2.12 points to trade at 39.38 at the close. Airbus Group SE (PA:) declined 4.30% or 2.88 points to end at 64.06 and Compagnie de Saint Gobain SA (PA:) was down 3.77% or 1.38 points to 35.21.

The top performers on the SBF 120 were Virbac SA (PA:) which rose 2.29% to 223.50, Television Francaise 1 SA (PA:) which was up 1.95% to settle at 5.22 and Ingenico Group SA (PA:) which gained 1.85% to close at 135.05.

The worst performers were Mercialys SA (PA:) which was down 5.28% to 4.52 in late trade, WFD Unibail Rodamco NV (AS:) which lost 5.11% to settle at 39.38 and Sodexo SA (PA:) which was down 4.54% to 60.14 at the close.

Falling stocks outnumbered advancing ones on the Paris Stock Exchange by 356 to 193 and 96 ended unchanged.

The , which measures the implied volatility of CAC 40 options, was up 5.61% to 29.23 a new 3-months high.

Gold Futures for December delivery was up 0.68% or 13.05 to $1928.45 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in December fell 4.48% or 1.87 to hit $39.83 a barrel, while the December Brent oil contract fell 3.85% or 1.66 to trade at $41.50 a barrel.

EUR/USD was up 0.43% to 1.1872, while EUR/GBP fell 1.18% to 0.9022.

The US Dollar Index Futures was down 0.56% at 92.532.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Disney’s Bob Iger to join board of animal-free dairy maker Perfect Day By Reuters

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© Reuters. European premiere of “The Lion King” in London

(Reuters) – Walt Disney (NYSE:) Co Executive Chairman Bob Iger will share a board seat at animal-free diary maker Perfect Day along with co-founders Ryan Pandya and Perumal Gandhi, the company said on Wednesday.

“We’re focused on rapid commercialization in the U.S. and globally. But we know we can’t do it alone,” co-founder and Chief Executive Officer Pandya said on Iger’s appointment.

Plant-based or meatless foods have grown in popularity in recent years, with several major fast-food chains introducing such items across the globe, as diners become more conscious of how their food is sourced and its impact on the environment.

The Bay Area startup counts Singapore state investor Temasek Holdings and Hong Kong-based venture capital firm Horizons Ventures as lead investors. It has so far received $360 million in total funding.

Temasek will be represented on the board by Aftab Mathur and Patrick Zhang will represent Horizons.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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HSBC to cut up to 300 jobs in UK commercial banking overhaul, source says By Reuters

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© Reuters. An HSBC bank is pictured in New York

By Karin Strohecker and Lawrence White

LONDON (Reuters) – HSBC (L:) has launched a restructuring of its commercial banking business in Britain, a source familiar with the matter told Reuters on Wednesday, resulting in around 300 job losses.

“In line with the Group strategy announced in February, we continue to restructure and review the roles required to transform the bank,” a spokesman for HSBC said.

Europe’s biggest bank in June resumed plans to cut around 35,000 jobs it had put on ice after the coronavirus outbreak, as Europe’s biggest bank grapples with the impact on its already falling profits.

Chief Executive Noel Quinn has said the moves are necessary to improve the banks profits, as economic forecasts point to a challenging time ahead for the Asia-focused lender.

HSBC’s commercial banking business provides loans and other banking services mainly to small and medium-sized businesses.

The unit has in common with its rivals struggled in recent years to improve revenues amid rising competition and rock-bottom interest rates that squeeze the margins between deposits banks take in and loans they make to borrowers.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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