U.S. equity markets turned sharply lower early afternoon on a report the Biden administration is mulling increasing the capital gains tax. This as investors digested a basket of fresh earnings. 

The Dow Jones Industrial Average fell over 200 points or 0.64%, while the Nasdaq Composite and S&P 500 fell  0.38% and 0.46%, respectively. 

Biden, according to Bloomberg, is exploring raising the rate for wealthy individuals to between 39.6% and 43%.

Ticker Security Last Change Change % I:DJI DOW JONES AVERAGES 33951.26 -186.05 -0.55%SP500 S&P 500 4156.14 -17.28 -0.41%I:COMP NASDAQ COMPOSITE INDEX 13908.059668 -42.16 -0.30%

In economic data, initial jobless claims fell to a coronavirus-era low of 547,000, better than the 617,000 that analysts were expecting. Additionally, existing-home sales hit a 7-month low on record prices, tight inventory.



In earnings news, AT&T shares jumped after profits rose by $7.5 billion, or $1.04 a share, up from $4.6 billion, or 63 a share in the same period a year-ago. 

Ticker Security Last Change Change % T AT&T, INC. 31.39 +1.29 +4.30%

President Biden is holding a virtual conference with 40 world leaders, including Chinese President Xi Jinping, where he will pledge to lower U.S. greenhouse gas emissions by up to 52% from 2005 levels before the end of the decade. Automakers were among the groups in focus as Biden gets set to unveil his climate actions. 

Ticker Security Last Change Change % F FORD MOTOR CO. 12.03 +0.31 +2.65%GM GENERAL MOTORS CO. 56.90 -0.60 -1.05%TSLA TESLA, INC. 731.11 -13.01 -1.75%

Meanwhile, Credit Suisse Group said it could raise around $2 billion through the sale of new shares in order to shore up its balance sheet following the Archegos Capital Management debacle, which resulted in a 4.4 billion Swiss franc charge. The bank expects an additional 600 million Swiss franc charge in the current quarter. 

Ticker Security Last Change Change % CS CREDIT SUISSE GROUP AG 10.08 -0.29 -2.84%

American Airlines Group Inc. loss in the three months through March narrowed to $1.25 billion, from $2.24 billion a year earlier, as it posted a fifth straight quarterly deficit. The airline sees signs of demand recovering during the current three-month period. 

Ticker Security Last Change Change % AAL AMERICAN AIRLINES GROUP, INC. 20.66 -0.34 -1.64%LUV SOUTHWEST AIRLINES CO. 62.50 +0.53 +0.86%

Rival Southwest Airlines Co. earned $116 million last quarter, boosted by $1 billion in federal money that offset labor costs. The company forecasts its cash burn will slow to between $2 million and $4 million per day in April as more Americans get vaccinated and begin to travel.

Ticker Security Last Change Change % DHI D.R. HORTON INC. 94.03 +0.82 +0.89%WHR WHIRLPOOL CORP. 233.90 -0.67 -0.29%

Elsewhere, Homebuilder D.R. Horton Inc. reported quarterly profit nearly doubled from a year ago as low mortgage rates and increased demand for housing in the socially distant suburbs amid the pandemic boosted sales. While appliance maker Whirlpool raised its full-year guidance as demand for housing remains strong. 

In commodities, West Texas Intermediate crude oil rose 45 cents to $61.80 per barrel and gold dropped $12.70 to $1,780.40 an ounce. 


Overseas markets were mostly higher. 

European markets rallied across the board with Britain’s FTSE 100 up 0.05%, Germany’s DAX 30 gaining 0.48% and France’s CAC 40 advancing 0.69%. 

In Asia, China’s Shanghai Composite index slipped 0.23% while Hong Kong’s Hang Seng index and Japan’s Nikkei 225 climbed 0.47% and 2.38%, respectively. 

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