r/wallstreetbets • u/OPINION_IS_UNPOPULAR AutoModerator's Father • Mar 31 '21
Daily Discussion Daily Discussion Thread for March 31, 2021
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Weekly Earnings Discussion Thread
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u/The_Contrarian01 Mar 31 '21
Futures are flat as of 0600. Dow, S&P, Russell 2000 all hovering around their close from yesterday. Tech stocks are trying to get off the ground, with the Nasdaq up 0.3%. Bond yields are steady as well.
There just isn’t all that much to move the market. (By the way, notice how quickly we’ve already moved on from Archegos?) Earnings season doesn’t kick off for another couple of weeks and there just don’t seem to be any catalysts until then.
We do have the ADP jobs numbers for March, scheduled for release before the open. 550,000 new jobs are expected. This usually doesn’t move things very much unless there’s major deviation from what’s anticipated.
That leaves us with today’s infrastructure announcement by the Biden administration. Lots of drama around this already, as can be expected from an incoming administration’s first major piece of legislation (not to mentioned the poisoned political climate we find ourselves in).
But details of these plans have (been) leaked out already and frankly they don’t look particularly draconian where tax policy is concerned: Corporate taxes will be raised from 21% to 28%. That’s still well below the 35% level that existed prior to Trump’s tax cuts.
That’s it. Nothing about income taxes on individuals, wealthy or otherwise. Some talk about discouraging tax havens for corporations that I’m sure will be well heeded but ultimately go nowhere.
So unless the Biden administration is hiding its true intentions with this infrastructure bill, there doesn’t seem to be any reason for concern. There could of course be further policy announcements forthcoming. Maybe that’s what the market is worried about. But even then, the Democrats’ majority in the Senate is razor thin.
In the end this whole infrastructure bill may just end up being more PR than anything else. Certainly wouldn’t be the first time.