Thursday, April 1, 2021

🙃 The Buy Now, Pay Later Infrastructure Plan

Good morning. The Biden Administration finally unveiled its $2 trillion infrastructure plan.
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.

Good morning. The Biden Administration finally unveiled its $2 trillion infrastructure plan. With generous provisions for public transit, light rail, and electric vehicles, nearly every company in the S&P 500 stands to benefit from the higher spending, whether directly or indirectly.

However… someone's got to pay for it. And the tax hikes proposed will fall on businesses under a plan for higher corporate tax rates, the closing of loopholes, and higher rates on overseas profits. The overall plan sounds very much like a "buy now, pay later," plan, as the spending will likely hit its peak in time for the 2022 midterm elections, while the taxes will kick in over a period of a few years. In the meantime, the market seems on board with the plan.

Now here's the rest of the news:

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Michael Kobler walked away from his $2 billion oil company. Andrew Bowering's last lithium company saw its share price fly 6,351% in 18 months.

Now, they've teamed up on a massive Nevada lithium property.

A new FREE report details what's on the line for lithium investors. You can get it here.


MARKETS
DOW 32,984.65 -0.25%
S&P 3,973.33 +0.37%
NASDAQ 13,246.87 +1.54%
*As of market close
Stocks traded mixed on Wednesday, with tech rallying. The S&P 500 hit a new all-time high.
Oil prices dropped 2.1 percent, last trading at $59.26.
Gold rallied 1.3 percent, changing hands at $1,708 per ounce.
Cryptocurrencies traded flat, with Bitcoin last at $58,840.

Today's TOP TIPS
Slight Sales Miss Signals a Long-Term Buy for this Stealth Tech Play
The past few years has seen an explosion of interest in software, security, and the rise of high-tech vehicles. A number of new and existing companies have been working to develop solutions for these spaces. One surprising name is BlackBerry (BB).

The former smartphone company has pivoted to security and automotive software, looking to create secure connections. The turnaround has been gradual, but it does look like it's happening.

» FULL STORY

Insider Trading Report: VIZIO Holding Corp (VZIO)
Julia Gouw, a director at VIZIO Holding Corp (VZIO) recently made a 35,000 share buy to start a new stake in the company. The purchase price came to $735,000.

This marks the first insider buy since the company's IPO in March. A number of other insiders, from major holders to the company COO to a director, have been selling off their stakes, even as shares have pushed higher.

» FULL STORY

Unusual Options Activity: Square (SQ)
Shares of digital payments company Square (SQ) have been off in recent weeks, coming down from a high near $280 per share closer to $200. At least one trader sees further upside ahead.

That's based on the May $200 calls. Expiring in 50 days, and with shares around $215, the option is already nearly $15 in-the-money. Over 10,300 contracts traded, a 25-fold rise in volume from the prior open interest of 413.

» FULL STORY

IN OTHER NEWS
Japanese Sellers Boosted Bond Yields

The rise in bond yields in recent weeks has been a concern for the market. However, some of the move may have resulted in fiscal year-end selling by Japanese investors. By selling off U.S. bonds, these investors have been able to reinvest their capital into bonds in other currencies. With the start of a new fiscal year in Japan, traders will be watching how that impacts U.S. Treasuries in the coming weeks.
China Prepares Stricter Credit Ratings Rules

Following criticism over how its credit ratings industry is regulated, China has proposed a major overhaul. Five government departments have come up with a plan to improve ratings quality from issuers and ratings firms alike, with an eye towards increased scrutiny to ensure ratings match the appropriate risks.
Huawei Loses Smartphone Crown on Sanctions

Chinese tech company Huawei was able to become the world's biggest smartphone maker last year. However, since becoming the crown of the industry, it's now slipped out of the top 3, thanks to U.S. sanctions. However, other consumer electronics such as laptops and tablets have allowed the firm to avoid an earnings collapse.
Biden Administration Unveils EV Charging Plan in Infrastructure Bill

The Biden Administration unveiled its $2 trillion infrastructure bill on Wednesday. One big component of the bill includes charging stations for electric vehicles. Estimates are that $300 billion will be needed globally to build out a global charging network, with at least $50 billion in the U.S. alone.
Facebook Launches Tool for Non-Algorithmic News Feed

Social media giant Facebook (FB) has faced criticism over the years for its algorithms, specifically with what they show to users and when. The company denies that there's an issue, but is launching a tool to allow users to view a version of the site's News Feed that avoids using its algorithm. The tool makes it easier to view "Favorites," posts from a user's top 30 favorite friends and Pages.

S&P 500 MOVERS
TOP
ENPH 7.676%
PVH 5.573%
AMAT 5.396%
TSLA 5.083%
TER 4.933%
BOTTOM
KR 5.488%
LULU 43.724%
VIAC 3.24%
FLT 2.899%
AIRC 2.774%

Quote of the Day
The losses as very material in relation to lending exposure for a business that is mark-to-market and holds liquid collateral…In normal circumstances... we would have suspected industry losses of $2.5-5bn. We now suspect losses in the range of $5-10bn.
- A JPMorgan Chase analysis on the impact of the Archegos fund receiving a margin call, and why the selling may not be complete.

Sponsored Content
Is This Government Regulation The Key To A Lasting Fortune?
In a form NS 43-101, two energy sector legends have told federal regulators that they may have found one of the world's biggest lithium discoveries – a massive 7 million tons near Tonopah, Nevada, worth around $70 billion.

Find out HERE what this could mean for early investors.


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