Friday’s Headlines: Market Drops On Biden’s Tax Proposal

Friday’s Headlines: Market Drops On Biden’s Tax Proposal

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Huazhu Hotels Group (HTHT) +3.9%

Lululemon (LULU) +3.7%

Vail Resorts (MTN) +3.3%

Chuy's (CHUY) +3.3%

Sea Limited (SE) +2.2%

Moving Down ⬇️

Twitter (TWTR) -4.5%

Shopify (SHOP) -4.0%

Tesla Motors (TSLA) -3.3%

DraftKings (DKNG) -2.7%

Yext (YEXT) -2.7%

1. Following reports that President Biden is considering increasing capital gains taxes to 39.6% on wealthy Americans, major indexes wavered yesterday. The S&P 500 (VOO), Nasdaq (QQQ), and Dow Jones (DIA) all dipped 0.9% after the news on Thursday. Technology and growth stocks were some of the biggest losers — shares of Micron Technology, Twitter (TWTR), and Shopify (SHOP) all dropped around 4%. The planned tax increase, which was far from a surprise, will supposedly be used to fund education and other spending priorities to overhaul the U.S. economy. The President is expected to release the proposal next week as part of the American Families Plan, which is estimated to cost around $1 trillion. Read more on the story here

2. Tesla (TSLA) is in hot water again in China as state media and regulators criticized the automaker following a customer’s protest at a major auto show this week. The EV company might be facing its worst PR incident ever after a video of a woman standing on top of a Tesla at the Shanghai show with a T-shirt that read “brakes don’t work” in Chinese went viral on social media. The alleged Tesla customer was protesting a brake failure in her car — an issue which other Tesla drivers in the country have complained about recently. State-run news outlets called Tesla’s stance arrogant, overbearing, and asked the company to respect the Chinese consumer market. Upon the news, Tesla shares fell 3.3% yesterday. See the full story here

3. Shares of Boston Beer (SAM) rose in after-hours trading yesterday after the company reported stronger-than-forecast quarterly revenues and earnings. The Sam Adams-maker posted quarterly earnings of $5.26, compared with $3.77 a year ago. Boston Beer also recorded revenues of $545 million, beating analysts' estimates, up from the $214.5 million revenue in the year-ago period. The beer company’s greatest success during the quarter was its Truly brand, which reached a market share of over 28%. Boston Beer expects the launch of its new ‘Truly Punch Hard Seltzer’ in Q2 to continue this positive momentum. Check out the full press release here

One more earning from last night: 

Silicon Valley Bank (SIVB)
High-tech commercial bank Silicon Valley reported net income of $532.2 million, or $10.03 per share, compared with $132.3 million in the year-ago period. CEO of SVB Financial Group, Greg Becker, stated: "We delivered our best quarter ever with exceptional balance sheet growth, earnings and profitability against a backdrop of continued robust liquidity for our clients and an improving economic outlook." Read the full press release here.

There is 1 company on the MyWallSt shortlist that will report earnings today: 

Gentex (GNTX)

Get this week’s full earnings calendar here


Sign up for free to continue reading.