(KRON) — In today’s installment of Winners & Losers, financial expert Rob Black discusses climbing stock markets, the recently-passed Inflation Reduction Act and the success of “Top Gun: Maverick” at the box office.
Winner: Markets climb as Wall Street rally continues
The stock market rally since the June 16 low looks to have legs.
Stocks are rising following the S&P 500′s third straight weekly gain, as investors shifted focus to a key inflation report this week.
The gains came despite Nvidia announcing weak revenue for the second quarter, putting pressure on semiconductor stocks.
Friday gave us a surprisingly strong monthly jobs report eased some recession fears.
Markets will look ahead to Wednesday’s all important CPI report.
Second-quarter earnings season continues this week with reports from Walt Disney, Coinbase, Norwegian Cruise Line Holdings and Rivian Automotive.
The climate and tax package passed by the Senate could trigger private investments that reach into the trillions.
CVS Health is attempting to buy in-home health company Signify Health, whose large mobile network of healthcare professionals do in-home checkups. One Medical inked a deal to be acquired by Amazon.
Bitcoin has extended its rally as stocks elevate, climbing above $24,000 as CoinBase also surges.
Winner: Senate passes climate bill
After 18 months of fierce negotiations, the Senate passed the Inflation Reduction Act (IRA), a milestone victory for President Joe Biden’s economic agenda.
The IRA brings major changes to taxes and healthcare and ramps up the fight against climate change with the country’s largest ever federal investment in clean energy.
What’s in the bill?
Here’s my best effort in condensing a 755-page whopper into three bullet points:
Climate change: The bill includes $260 billion in tax credits for renewable energy in order to bring down the cost of solar, wind and other clean power sources. By the end of this decade, the energy field may well look vastly different. Renewables will overtake as the primary source of power generation.
Taxes: The bill allots $700 billion in government revenue over a decade. The bill slaps a 15% minimum tax on mega corporations with meaty profits and introduces a 1% excise tax on share buybacks. The IRS will get its biggest budget increase in history to beef up tax collection efforts.
Healthcare: The bill includes a suite of changes that are intended to lower drug prices, including allowing Medicare to negotiate some prescription drug prices with pharma companies.
One thing the Inflation Reduction Act does not appear to do: reduce inflation.
Lawmakers in Washington are quietly having a very productive summer.
Winner: ‘Top Gun: Maverick’ overtakes ‘Titanic’ at the U.S. box office
Going to the movies is bad news for streaming services like Netflix and HBO Max but good news for theatres.
“Top Gun: Maverick” has overtaken “Titanic” to become the seventh highest-grossing movie ever at the U.S. box office, earning $662 million in ticket sales.
Maverick surpassed Titanic by more than $3 million.
It is now positioned behind Marvel’s “Avengers: Infinity War,” which grossed $678 million in the U.S.
Some records Maverick did hit are:
- Tom Cruise’s highest-grossing film of all time
- Paramount’s number one movie at the U.S. box office
Maverick has also earned more than $1 billion at the global box office and has become the highest-grossing movie of 2022.