The stock market erased opening gains to trade lower on Thursday following news President Biden is set to propose a plan that could nearly double the capital gains taxes on the wealthy. The proposal would boost the rate to 39.6% for individuals earning $1 million or more, an increase from the current rate of 20%.
The continued rise in coronavirus cases globally, notably the surge in India, also weighed on sentiment as the possibility of a delay to the expected global recovery rises along with infections. Meanwhile, volatility spiked to its highest level since late March while holding a key level of resistance.
The Dow tested an intraday low of 33,717 before settling at 33,815 (-0.9%). Current and upper support at 33,750-33,500 was tripped but held. A close below the latter would indicate a further drop towards 33,250-33,000.
The Nasdaq tapped an afternoon low of 13,771 while closing at 13,818 (-0.9%). Near-term and upper support at 13,800-13,650 was breached but held. A drop below the latter would signal a retest towards 13,500-13,350.
The S&P 500 ended at 4,134 (-0.9%) after testing a low of 4,123. Upper support at 4,125-4,100 was breached but held. A move below the latter would suggest additional weakness towards 4,075-4,050.
The Russell 2000 finished at 2,232 (-0.3%) with the second half low reaching 2,227. Prior and upper support at 2,225-2,200 was challenged but held. A close below the latter would likely lead to a further pullback towards 2,175-2,150 with Tuesday’s and the monthly low at 2,171.
A uniqueincome strategyallows you to profit regardless if the market goes up, down or sideways…as high as 84.2% accuracy & puts money into your account as soon as you place the trade!
These unique ‘Income Trades’ have limited risk and they typically play out in a few days.Perfect for boosting your weekly income and building your retirement account.
Go here to learn more about Creating a Steady Stream of Profits Each Week Like Clockwork…
AutoNation (AN) upgraded to Buy from Hold at BenchmarkFirst Solar (FSLR) upgraded to Equal Weight from Underweight at BarclaysWebster Financial (WBS) upgraded to Overweight from Equal Weight at StephensBraskem (BAK) downgraded to Hold from Buy at HSBCPlanet Fitness (PLNT) downgraded to Neutral from Overweight at Piper SandlerWelbilt (WBT) downgraded to Sector Weight from Overweight at KeyBanc
FRIDAY’S EARNINGS ANNOUNCEMENTS Before the open: American Express (AXP), Civista Bancshares (CIVB), First Hawaiian (FHB), Gentex (GNTX), Honeywell International (HON), Independent Bank (INDB), Kimberly-Clark (KMB), Regions Financial (RF), Schlumberger (SLB)
After the close: X Financial (XYF)
FRIDAY’S ECONOMIC NEWSPMI Manufacturing Index – 9:45amNew Home Sales – 10:00amBaker-Hughes Rig Count – 1:00pm
METALS/ OILGold closed at $1,782.00 an ounce, down $11.10Silver settled at $26.18 an ounce, down $0.39Copper finished at $4.27 a pound, down $0.01Crude Oil was at $61.66 a barrel, up $0.55Bitcoin Investment Trust (GBTC) ended at $41.32 down $4.03
I hope this helps you prepare for the trading day. Make it a great one!
Step #2: Enroll in an Advisory or Educational ProgramPremium Advisories | Featured Educational Programs
Step #3: Connect with The CommunityTrading Concepts Official Facebook Page