Those Thorny Taxes - Kuby's Commentary 04.26.2021

A record 84% of companies have reported actual EPS above estimates, by a record 23.6% amount. The blended earnings growth rate for the first quarter is now 33.8% today, compared to an earnings growth rate of 30.3% last week and an earnings growth rate expectation of 23.8% at the end of the first quarter (March 31). The party on Wall Street had a sobering moment midweek when news of proposed tax increase by President Biden circulated. News of the proposal triggered sharp declines for two days on Wall Street, but a rally on Friday recouped most of the losses. Cryptocurrencies were hit hard, with Bitcoin down over 20% from its recent peak of $64,829. It is worth noting that the recent sell-off still leaves Bitcoin up over 30% YTD and almost 400% over the last twelve months. There will be several important economic releases this week, such as Consumer Confidence on Tuesday and Personal Income and Expenditures on Friday.