The Market Started June with Mixed Results Partially Due to Concerns Around President Biden's Higher Taxes
The stock market indices wrapped May with mixed results and started June mainly in the red.
While June’s first trading day started in the green, all three indices retreated to near the zero lines by the end of the day. The market's pessimism is partially due to President Biden’s $6 trillion budget discussion with a plan to increase corporations' and individuals' income tax rates.
Best Buy Now
A New Stock Pick For the 2021 Starter Portfolio
Before we start, let me tell you about the 2021 Starter portfolio on Stock Card's Stock Pick page. Look for the Starter portfolios in the search bar.
We create these Starter portfolios to give Stock Card users, who are just beginning to invest, a monthly stock pick idea. We have done this since 2018, and you can see the Starter portfolio has been doing quite well, beating the S&P 500, even though they may go through some short-term fluctuations.
Our philosophy for Starter portfolios is to pick a well-managed company in growing markets that can set the foundation for a long-term portfolio for new investors. Check out the latest stock pick for the 2021 Starter portfolio by visiting the Stock Pick page!
AMC Entertainment (AMC) Investors Who May Have Been Behind the Recent Stock Price Rally Have Already Sold Their Shares
I've noticed shares of AMC Entertainment (AMC) continued its recent rally, up by more than 21%. The company announced that it had sold $230 million of shares to Mudrick Capital Management. This investment firm specializes in so-called distressed companies, and AMC has undoubtedly been a distressed company since the start of the pandemic.
The story isn't over, however. It seems Mudrick Capital has already sold all its shares to take advantage of the stock price's recent rally.
So, on the one hand, the distressed AMC got some cash to take care of its business, and the investment company made a quick buck thanks to the meme stock phenomena.
It makes you wonder whether the recent stock price rally was at least partially due to the $230 million initial investment, which is now sold to individual investors from the Reddit sub forum who jumped on the wagon after they saw the stock rallied.
The Global Accessibility of The COVID-19 Vaccine Is Expected to Drag Abbott Laboratories' (ABT) Profit in 2021
Shares of Abbott Laboratories (ABT) were down more than 10%. The company revised its full-year profit forecast due to a lower expected COVID-19 diagnosis and testing kit.
With the rapid accessibility of COVID-19 vaccination and decreasing cases globally, the demand for the testing kits has dropped rapidly. Abbott is using that as an excuse to revise its revenue forecast downward.
Want to receive this daily stock market recap report in your mailbox?