Yazar: Geoffrey Smith
Investing.com – President Joe Biden will announce its third largest package within 100 days since taking office, while the Fed is expected to say it is not affected by rising commodity prices. Alphabet (NASDAQ 🙂 reported spectacular gains, with advertisers’ efforts to show the names to a public that is getting ready to spend again. Facebook and Apple will share their earnings at the closing. Oil is on the rise after Goldman Sachs analysts said a recovery in demand could push prices up to $ 80.
What you need to know in financial markets on Wednesday, April 28:
1. Biden to explain plans to expand the social safety net
Today is a big day for politics in the USA. President Joe Biden is expected to detail the public spending package, which is at least partially financed by higher taxes.
Biden will cover the universal preschool program for children aged 3 and 4, increased childcare for low and middle-income families, and two-year university education, including children of illegal immigrants (known as the Dreamers), at a joint session of the Congress in the daytime 1, He will give a speech where he will announce the new federal spending plan of 8 trillion dollars.
Biden reportedly will also approve preliminary reports that it will increase the marginal rate on capital gains tax to 39.6% to help meet the programs. Of the three packages Biden has announced so far, this is facing one of the fiercest Republicans opposition in Congress.
2.The Fed is expected to ignore rising commodity prices
There are not only fiscal policy headlines today. The Fed will also make its final policy decision, and the biggest open question is how much credit President Jerome Powell gives to recent data suggesting that recovery is gaining momentum.
Since the last meeting, Powell has repeatedly stated: The Fed will only begin to tighten its policy when “significant progress” is made.
While annual inflation rates are rising thanks to strong base effects and – increasingly – producer price pressures, the economy is still spinning with 9 million fewer jobs than before the epidemic. At the press conference, Powell might be asked how he’s looking at the massive rise in commodity prices in recent weeks. Both agricultural and industrial commodities still hover close to the highs of many years.
3. Stock exchanges will open mixed, Apple and Facebook earnings will be shared
US stock markets will be opened mixed. Market participants are largely waiting for important news before setting sail for new bets.
It fell by 57 points and rose below 0.1%. lost 0.2%, partly due to the 2.2% drop seen in Microsoft stocks.
Big Tech names will dominate the earnings streak again: Apple (NASDAQ 🙂 and Facebook (NASDAQ 🙂 will report after closing. Boeing (NYSE 🙂 and Qualcomm (NASDAQ 🙂 will also present their updates and shed light on the state of the global chip shortage and air travel recovery.
4. Alphabet’s glamorous quarter
Alphabet reported a glamorous quarter as companies started to increase their ad spending again in anticipation of returning to pre-pandemic consumer models. This report confirmed the strong figures shared by Omnicom and WPP (LON :).
The company said its revenue grew 34% to $ 55 billion. The $ 31 billion comes from signature Google products, search engine, maps and YouTube. YouTube revenue increased 49% over last year.
Alphabet also announced a new $ 50 billion share buyback program. Its shares increased over 4%.
Microsoft (NASDAQ 🙂 shared strong but less impressive results. The game operations, to which a significant contribution came, were also an important part of Sony updates that came better than expected during the Asian session.
5.Goldman and OPEC raise oil, eyes on EIA stocks
Crude oil prices saw slight increases. OPEC + decided to maintain its current production increase program.
The bloc made its decision without the usual full-fledged ministerial meeting, after the Joint Ministries Monitoring Committee agreed when it continued to see significant recovery in global demand.
futures rose 0.2% to $ 63.05 and rose 0.2% to $ 65.97.
A new report from Goldman Sachs (NYSE 🙂 analysts predicts that oil will see $ 80 as the recovery in demand goes beyond compensating for one of the relatively weak US stock figures. Government data will be shared at the usual time.