S&P 500 (SPX) Nasdaq (QQQ) Day Ahead: Tax talk troubles markets, SPX sits on support line

Here is what you need to know on Friday, April 23:

Equity markets took a little wobble as Thursday progressed with President Biden proposing to tax the wealthy for stimulus plans. In what would be a significant hit to financial market investment, President Biden is reportedly considering nearly doubling capital gains tax on wealthy Americans. This is in addition to earlier talk of corporate taxes being raised. All in all a double hit to the stock market, but so far it is weathering the storm relatively well.

The dollar is down at 1.2060 versus the euro, Gold is higher at $1,791, but Bitcoin suffers and drops below $50,000 to trade as low as $47,600. The US 10-year yield remains at 1.55%.

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European markets are steady and mostly flat with the Dax at -0.5% being the underperformer. The FTSE is +0.1%, and the EuroStoxx is flat.

US futures are all slightly higher, the S&P is +0.2%, Dow +0.1%, and Nasdaq +0.2%.

The SPX sits comfortably on 9-day moving average support, and the Relative Stength Index (RSI) has retreated from the overbought zone earlier on Monday. The Moving Average Convergence Divergence (MACD) indicator looks ready to provide a sell signal.

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S&P 500, Nasdaq top news

President Biden proposed to increase capital taxes on wealthy Americans from 20% to 39.6%.

ECB says tough decision ahead in June on its bond-buying program.

EU completes a new deal with Pfizer/BioNTech for 1.8 billion covid vaccine doses, Reuters.

EU PMI 53.7 from 52.9 expected.

JNJ: CDC to meet on Friday to discuss covid vaccine authorization.

Intel (INTC) reported earnings after the close on Thursday, which disappointed the market despite beating estimates. The outlook disappointed. Shares down 2% in premarket.

American Express (AXP) profit beats but revenue misses, shares down 3% in premarket.

Mattel (MAT) to jump on the NFT bandwagon by considering making some of its collector brands into NFTs. 

SNAP beat earnings estimates as user growth increased more than forecast. Shares up 4% in premarket.

Skillz (SKLZ) ARK funds buys more.

WWE wrestles bears to the ground as it beats earnings and revenue forecasts. Shares flat in premarket.

Baidu (BIDU): Baidu and Geely are to pour over $7 billion into smart car development via their joint venture Jidu Auto over the next five years.

Tesla (TSLA): Elon Musk offers $100 million in prize money to inventors to develop ways of combatting climate change by removing carbon dioxide from the atmosphere. see more on Tesla.

Ups and Downs

Tesla (TSLA): Morgan Stanley raises price target.

Harley Davidson (HOG): Morgan Stanley downgrades.

Alphabet (GOOGL): Credit Suisse raises price target.

Amazon (AMZN): BMO raises price target.

American Airlines (AAL): Raymond James upgrades.

Spotify (SPOT): Jefferies initiates with a buy.

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