 | | |  Good morning. When it comes to taxation, the government's vision is based on movement. It's not until you make a move and take a gain that your paper profits become real, and therefore taxable. That's a key reason why Warren Buffett's favorite holding period is forever.
But that may soon change, thanks to a proposed billionaire's tax. To fund the latest spending programs, the government is looking at taxing billionaires, or those who made more than $100 million in income for three years in a row, on unrealized gains. Rather than hold forever, these ultra-wealthy may have to start selling off shares to pay taxes they would be charged for not selling off shares.
While that sounds roundabout, it could lead to a wave of selling that would hit everyday Americans in their 401k or IRAs as well. While wealth inequality is an issue, this top-down approach could kill the markets and make all worse off rather than better redistribute wealth. Keep an eye on the passage of this tax. It may not happen this year, but it's now on the table in future years when it may be more politically viable.
Now here's the rest of the news: | | | | | |
| | |  | DOW 35,741.15 | +0.18% | | | | S&P 4,566.48 | +0.47% | | | | NASDAQ 15,226.71 | +0.90% | | | | | *As of market close | | | • | Stocks moved higher on Monday, with the S&P 500 and Dow hitting record intraday highs. | | | • | Oil declined 0.4 percent, closing at $83.47 per barrel. | | | • | Gold rallied 0.6 percent, last going for $1,808 per ounce. | | | • | Cryptocurrencies trended higher, with Bitcoin at $62,842 at the stock market close. | | | | | | | |
| | | The Market Is Clear: When in Doubt, Buy Quality | | | | Some stocks in the same industry may have a vastly different valuation than others. This is typically the market's way of indicating which company is the industry leader. That may be higher profit margins, or a better product, or even more loyal customers.
This notion recently appeared on the market when chipmaker Intel (INTC) reported earnings. As with its prior reports, the numbers were okay, but poor guidance and a sense that the company was treading water operationally led to a selloff.
» FULL STORY | | | | |
| | Insider Trading Report: Mueller Industries (MLI) | | | | Gary Gladstein, a director at Mueller Industries (MLI), recently picked up 11,399 additional shares. The buy increased his stake by over 9 percent, and came to a total cost of just under $544,000.
This is the first insider buy at the company since February. A number of company insiders have been regular sellers of shares, including both directors and the company CEO over the past three years, even as shares have trended higher.
» FULL STORY | | | | |
| | Unusual Options Activity: Devon Energy Corporation (DVN) | | | | Shares of energy explorer and producer Devon Energy Corporation (DVN) are up nearly four-fold in the past year as energy prices, particularly natural gas, are on the rise. One trader sees shares moving even higher in the coming weeks.
That's based on the December $46 calls. With 52 days until expiration, 6,145 options traded against a prior open interest of 217, for a 30-fold rise in volume. The buyer of the calls paid $0.94 to make the trade.
» FULL STORY | | | | |
| | • | Cyberattacks on Tech Companies Rise
Microsoft (MSFT) reports that a number of hackers, including those behind last year's attack on SolarWinds, are continuing to try and break into tech companies to steal data and other valuable information. Based on data as of May, over 140 tech companies, particularly in the cloud-computing space, have had attacks, with as many as 10 percent of attempts being successful. | | | | • | China Reveals Plan to Cut Fossil Fuels
China expects to cut its use of fossil fuels to just 20 percent of its energy production by 2060, based on a government report. In the meantime, the country has not updated a plan on emissions reductions, as the country has moved to expand coal production and use amidst an energy crunch. | | | | • | Tesla Hits New All-Time High on Hertz Order
EV giant Tesla Motors (TSLA) hit a new all-time high in trading yesterday, following the news that the company had an order for 100,000 cars from rental firm Hertz Global (HTZZ). The order will allow Hertz to update its fleet to 20 percent electric. The deal is valued at $4.2 billion, with most of the order being fulfilled in the next 14 months. | | | | • | PayPal Drops Pinterest Bid
Payment giant PayPal (PYPL) announced that it wasn't pursuing a deal to acquire social media site Pinterest (PINS) despite a rumor last week. The deal would have been one of the largest mergers to date, having valued Pinterest at potentially a $45 billion market cap. | | | | • | Mastercard Looks to Integrate Crypto Services
Credit card company Mastercard (MA) is set to announce that it will be able to integrate cryptocurrency into its products, from Bitcoin wallets to credit and debit cards that offer crypto as well. That would make it easier for many to invest, save, and earn spending rewards in Bitcoin, and potentially other cryptocurrencies as well. | | |
| | | | TOP | | | TSLA | 13.091% | | | | NUE | 6.948% | | | | MRNA | 6.692% | | | | CTRA | 5.449% | | | | FCX | 4.553% | | | | BOTTOM | | | BLL | 4.859% | | | | OTIS | 4.549% | | | | HSIC | 4.519% | | | | HCA | 4.49% | | | | IPG | 2.706% | | | | |
| | |  | | Clearly, there's a place for crypto. Clearly, it's winning the race against gold at the moment. | | - Paul Tudor Jones, billionaire investor, who has stated that he owns some Bitcoin and that its returns relative to gold make it a better hedge against inflation over time. | |
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