Morning Report 23 Apr 21: US sharemarkets fell on Thursday

There was mixed economic data and renewed concern the pandemic was worsening. Investor sentiment was also dampened after Reuters reported that US President Joe Biden will propose raising the marginal income tax rate to 39.6% from 37% and nearly double taxes on capital gains to 39.6% for people earning more than US$1 million. American Airlines (-4.5%) and Southwest Airlines (-1.6%) both reported smaller-than-expected quarterly losses. Shares of AT&T rallied 4.2% after beating profit estimates. At the close of trade, the Dow Jones index was down by 321 points or 0.9%. The S&P 500 index also lost 0.9% and the Nasdaq index dropped 132 points or 0.9%.  

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399, AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (the Bank). The Bank and its subsidiaries have effected or may effect transactions for their own account in any investments or related investments referred to in this report. This report is not a recommendation to buy, sell or hold any securities or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual's objectives, financial or taxation situation and needs and, if necessary, seek appropriate professional advice. This report is produced by Commonwealth Research based on information available at the time of publishing. We believe that the information in this correspondence is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.