Dow shot up 304, advancers over decliners 2-1 & NAZ slid back 3. The MLP index added 4+ to the 181s & the REIT index rebounded 6+ to 470. Junk bond funds were bid higher & Treasuries rose in price. Oil went over 70 & gold added 6 to 1798.
AMJ (Alerian MLP index tracking fund)
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House Dems outlined a bevy of tax hikes on corps & wealthy people to fund an investment in the social safety net & climate policy that could reach $3.5T The plan calls for top corp & individual tax rates of 26.5% & 39.6%, respectively, according to a summary released by the tax-writing Ways & Means Committee. It includes a 3% surcharge on income above $5M & a capital gains tax of 25%. It's unclear how much the tax increases would raise & if the new revenue would offset the full investment in social programs. Dems could ultimately cut the legislation's price tag as centrists balk at a $3.5T total. The tax proposals may change before Dems craft the final bill they hope to pass in coming weeks. The Ways & Means Committee will debate tax policy when it resumes its markup of the mammoth spending package this week. Senate Dems will also have their say in the tax proposals. Sen Joe Manchin has called for a corp rate of 25%, lower than the one favored by House Dems & has also expressed concerns about the plan adding to budget deficits. The party will need votes from every member of the Senate Dem caucus & all but 3 House Dems. Senate Majority Leader Chuck Schumer & House Speaker Nancy Pelosi aim to pass the legislation thru the budget reconciliation process without Rep support. The House tax plan would not go as far as Pres Biden initially hoped. The pres had called for a 28% corp tax & a 39.6% capital gains rate.
House Democrats propose new tax hikes to pay for their $3.5 trillion bill: Here are the details
An expert review of scientific evidence to date has concluded that Covid-19 vaccine booster shots are not needed at this time for the general public, a group of leading US & intl scientists said. The conclusion by scientists, including 2 senior Food & Drug Administration officials & the WHO, came as studies continue to show the authorized Covid vaccines in the US remain highly effective against severe disease & hospitalization caused by the fast-spreading delta variant. While Covid vaccine effectiveness against mild disease may wane over time, protection against severe disease may persist, the scientists said. That's because the body's immune system is complex & has other defenses besides antibodies that may protect someone from getting seriously sick. “Current evidence does not, therefore, appear to show a need for boosting in the general population, in which efficacy against severe disease remains high,” the scientists wrote, adding the wide distribution of boosters is “not appropriate at this stage in the pandemic.” They acknowledged that booster shots may eventually be needed for the general population if vaccine-induced immunity wanes even further or a new variant emerges that can evade the protection of the shots. They said there are risks to distributing boosters too soon, including the potential for side effects such as a rare heart inflammation condition known as myocarditis, which is more common after the 2nd dose of mRNA vaccines. “If unnecessary boosting causes significant adverse reactions, there could be implications for vaccine acceptance that go beyond COVID-19 vaccines,” they wrote.
Data shows Covid booster shots ‘not appropriate’ at this time, U.S. and international scientists say
Kroger (KR) which had $132B in sales last year, says inflation is running hotter than management previously anticipated & that expectations are now for prices to rise 2-3% over H2 of this year. KR is "passing along higher cost to the customer where it makes sense to do so," said CFO Gary Millerchip. Further increases at the checkout counter would put further pressure on consumers who are already dealing with the biggest annual increase in consumer prices since 2008. Within the consumer price index, the component for food at home has risen 6 months in a row & is up 2.6% this year. ½ of the basket's price increase is due to soaring prices for beef, pork & poultry. Beef prices have risen 14% this year while pork prices have jumped 12.1% & poultry prices are higher by 6.6%. Prices were up in 5 of the 6 major grocery store food groups in Jul, falling only for fruits & vegetables. The category saw prices dip 0.9% after rising 0.7% in Jun. The Federal Reserve has said the price increases that have occurred in the wake of COVID-19 are "transitory" & that those pressures will subside as the supply-chain disruptions are resolved.
Grocery prices headed higher: Kroger
The future of the pork filled spending bill in DC is blurry at best. It's difficult to see why it's necessary to rush thru a bill with a record amount of spending. Currently it's being written by the same guys who gave us the Afghanistan disaster. Tomorrow the consumer price index data for Aug will be published & it is not expected to be pretty although the data is already in the past. After selling last week, bargain hunters are looking for buying opportunities.
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