Here are five things you must know for Friday, April 23:
1. -- Stock Futures Rise After Biden Tax Proposal Sinks Markets
Stock futures rose modestly Friday following the S&P 500's sharpest drop in five weeks after a report said President Joe Biden would propose raising taxes on wealthy investors.
Contracts linked to the Dow Jones Industrial Average rose 11 points, S&P 500 futures gained 6 points and Nasdaq futures were up 16 points.
A report from Bloomberg said the Biden administration was considering almost doubling the tax on capital gains to 39.6% for those earning more than $1 million a year. When including a surtax to help pay for Obamacare, the top federal tax rate for wealthy investors could be as high as 43.4%.
Stocks fell sharply Thursday following the Bloomberg report. The Dow dropped 321 points, or 0.94%, to 33,815, the S&P 500 fell 0.92% and the Nasdaq slumped 0.94%.
Stocks had traded mixed for most of Thursday's session following better-than-expected corporate profits and jobless claims that fell to a pandemic low, but also a renewed surge in coronavirus infections.
Biden's tax proposal is just the latest consideration for investors as they navigate through a market weighing signs of recovery in the U.S. but also worries that virus flare-ups could derail the economy's comeback.
2.-- Friday's Calendar: American Express and Honeywell Earnings
The U.S. economic calendar Friday includes the PMI Composite Flash for April at 9:45 a.m. ET and New Home Sales for March at 10 a.m.
3. -- Intel Falls as Data-Center Sales Slump 20%
Intel (INTC) - Get Report was falling nearly 3% in premarket trading after the biggest chipmaker said first-quarter revenue at its Data Center Group fell more than 20% from a year earlier and missed analysts' estimates.
Revenue at one of Intel’s most profitable businesses dropped to $5.56 billion, below Wall Street forecasts of $5.89 billion.
The company also reported a decline in gross margins to 55.2% during the quarter.
The drop in data center revenue overshadowed an earnings beat and a boost in Intel's annual forecast. Sales at the company's personal computer business had their best quarter in years.
Intel raised its sales forecast for the full year to $72.5 billion, up slightly from previous guidance of $70 billion.
The stock fell 2.83% to $60.80 in premarket trading.
4. -- Snap's Earnings Beat Expectations and Daily Users Surge
Snap (SNAP) - Get Report was rising in premarket trading Friday after the social media company beat Wall Street's first-quarter expectations and reported a surge in active daily users.
Revenue jumped 66% to $770 million, higher than forecasts of $744 million. Snap posted a loss in the first quarter of 19 cents a share, but that was below forecasts that called for a loss of 26 cents a share.
Snap said daily active users increased 22% to 280 million. Analysts had been forecasting 275.4 million, according to Bloomberg.
"We began 2021 by achieving our highest year-over-year revenue and daily active user growth rates in over three years during the quarter, and delivering positive free cash flow for the first time in Snap’s history as a public company," CEO Evan Spiegel said in a statement.
Snap said it expects second-quarter revenue of $820 million to $840 million vs. analysts’ estimates of $823.9 million. Adjusted Ebitda was forecast at between a loss of $20 million to break-even.
The stock rose 5.43% in premarket trading Friday to $60.15.
5. -- Bitcoin Falls Below $50,000 on Tax Worries
Bitcoin traded below $50,000, falling for the seventh time in eight days, after the Bloomberg report said President Joe Biden was crafting a proposal to almost double the capital gains tax for the wealthy.
According to CoinDesk, bitcoin fell over the past 24 hours to $49,820, down 7.94%.
U.S. investors in bitcoin, the world's largest cryptocurrency, already face a capital gains tax if they sell the digital asset after holding it for more than a year, according to Bloomberg. Anyone who bought bitcoin a year ago has seen a nearly 550% gain, Bloomberg noted. For investors who bought in April 2019, the gain is roughly 800%.
The Internal Revenue Service has been stepping up enforcement of tax collection on crypto sales, Bloomberg noted.