Munis Top Stocks on Value by the Most in Decades, MacKay Says
The firm, the muni investment arm of MacKay Shields, found that after accounting for taxes, muni yields exceed the S&P 500 earnings yield by about 244 basis points, a gap not seen since 2001-02. The earnings yield, often used as a proxy for what shareholders earn on stocks, has fallen as equity valuations climb.
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CNBC
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CNBC Daily Open: Trump's (new) new tariff rates are here (again)
The first time U.S. President Donald Trump unveiled his "reciprocal" tariffs on the rest of the world, the April 2 event had a cinematic, even grand, quality. It took place at the White House Rose Garden. There was a live band playing, according to The Wall Street Journal. Trump hoisted huge physical charts of his tariff rates, which were helpfully color-coded for visual clarity. This time, Trump's updated "reciprocal" tariffs, released the night before they come into effect on Aug. 1, seemed in comparison stripped of pomp and glamor. The White House's executive order popped up around 7 p.m. ET, just as people in the U.S. were getting off work. There was no live event, no big chart and certainly no entertainment — just a stern website with a black-and-white table. That austerity — and, one might even say, stealth — surrounding the recent announcement suggests two things. First, the White House could be aware that the dramatic shock of tariffs has less power to sway trade deals when staged a second time. The "90 deals in 90 days" that trade advisor Peter Navarro had promised in April are, after all, nowhere in sight. Second, the U.S. might actually be fine not making trade deals with some countries, leaving them with higher-than-hoped-for tariffs. In June, the U.S. Treasury Department reported an unexpected surplus thanks to tariff revenue, which were more than four times higher from a year ago. And economists aren't as alarmed by tariff-driven inflation as they once were. All that's speculation, of course. Little else is known about the latest tariffs except the numbers — it's been barely two hours since they were out and there have been no other official communication thus far. The order could have been released in this low-key fashion simply because the Rose Garden is now more like a Concrete Path. Or perhaps Trump doesn't want the penguins on the Heard and McDonald islands to hear about his levies this time. The U.S. rejigs tariff rates ahead of Aug. 1 deadline. Trump's executive order imposed tariffs ranging from 10% to 41% on dozens of countries, and subjected all goods considered to have been transhipped to an additional 40% duty. The S&P 500 falls, retreating from an intraday high. Microsoft shares, however, rose around 4% to push the company's market cap above $4 trillion. The Stoxx Europe 600 fell 0.75% amid a flurry of earnings from companies such as Rolls-Royce and AB InBev. Apple beats expectations for profit and revenue. The Cupertino-based company's iPhone sales grew 13% year over year, while overall revenue rose 10% in its fiscal third quarter, the fastest growth since December 2021. Amazon's gloomy guidance overshadows its earnings. Even though the company surpassed Wall Street's estimates for its second-quarter results, its expected operating income for the current quarter wasn't as high as analysts had hoped for. [PRO] Novo Nordisk's stock plunge isn't that surprising. On Tuesday, the firm's shares fell as much as 26% after it slashed its full-year guidance — and appointed a new CEO. Here's why companies tend to make both announcements simultaneously. Tariff turmoil: How global CEOs are shifting gears In interviews with CNBC this earnings season, CEOs across industries sent a clear message: tariffs are no longer just a political tactic. As trade rules grow more uncertain and tariffs resurface in policy discussions, business leaders say they're rethinking everything from where factories are located to how products are priced. The old "just in time" model is giving way to something more cautious: make goods closer to the buyer, ask for exemptions where possible, and stay alert to shifting consumer habits. —
CNN
2 minutes ago
- CNN
Elon Musk gave $10 million to Republican midterm efforts just before announcing his own America Party
PACs Congressional newsFacebookTweetLink Follow Billionaire Elon Musk donated a total of $10 million to a pair of super PACs aimed at helping Republicans retain their majorities in Congress after next year's midterm elections, new campaign finance reports show. The donations of $5 million each to the Senate Leadership Fund and the Congressional Leadership Fund came on June 27 – amid Musk's bitter feuding with President Donald Trump over federal spending legislation – and just days before the world's richest man declared he would form his own political party. The newly disclosed donations underscore Musk's outsize influence in US politics and raise fresh questions about what role the mercurial businessman might play in elections moving forward. The Tesla CEO emerged in Thursday's filings as the largest individual contributor to each of those congressional super PACs. Separately, campaign reports with the Federal Election Commission show Musk this year plowed more than $45 million of his own money into America PAC, the super PAC he oversees – as he worked, unsuccessfully, to shape the outcome of a Wisconsin Supreme Court race. In the 2024 election, Musk spent more than $290 million to help elect Trump and his favored congressional candidates. He served as a top White House adviser and the leader of the cost-cutting Department of Government Efficiency for several months this year before stepping back from government work to focus on his companies. At the time, he signaled he also might pull back on his political spending. But by early July, Musk was publicly battling again with Trump and congressional Republicans over domestic policy legislation Musk said would explode the deficit. He also pledged to form the America Party, although there are few signs that he has taken concrete steps in that direction. Thursday's report with the FEC covers his super PAC's activity only through the end of June. CNN's Alex Leeds Matthews and David Adkins contributed to this report.
CBS News
2 minutes ago
- CBS News
Advance payments of Minnesota's child tax credit begin. Here's what you need to know.
Nearly 18,000 Minnesota families are receiving a portion of the state's child tax credit starting this week. It's the first of three advance payments of what's touted as a nation-leading benefit aimed at reducing child poverty. The average direct deposit or check is nearly $450 and the state will send the other two payments at the end of September and November. "I think for many families, this is going to be a game changer," said Paul Marquart, commissioner of the Minnesota Department of Revenue. Tax filers could choose to opt in for advance payments earlier this year and those who did will receive the rest of the credit — which totals up to $1,750 per child — next spring. The amount families receive depends on their family size and household income. Higher wages mean a smaller credit. Around 220,000 received the 2024 credit when filing their returns this year, according to department data. Getting to cash in on part of the 2025 tax credit nine months earlier than tax season begins is a feature the Minnesota Legislature approved last year. It is similar to a move by the federal government when millions of families received six monthly payments of $250 to $300 per kid from July to December 2021. The money amounted to half of the child tax credit authorized by the American Rescue Plan, a COVID-19 relief package. Minnesota is the first of the 17 states with its own child tax credits to implement advance payments, Marquart said. "We know that if we can do that, it just enhances the flexibility and increases the likelihood that you're going to have a reduction in child poverty," he told WCCO in an interview. A recent study looking at the impact of cash assistance to poor families, reported by The New York Times this week, found that years of monthly payments of around $330 did not boost child well-being and the children whose families received the money in the experiment didn't fare better than those that did not see the extra funds. Marquart said he hadn't seen the study, but Minnesota plans to chart the tax credit program's impact and keep tabs on if it's meeting its intended goals. The state has been working with Columbia University, which initially estimated Minnesota's credit would slash poverty by one-third, and has also approached the University of Notre Dame for a study, too. "This is a significant investment. It's a significant priority for the state of Minnesota, and we need to be accountable as we're administering this program," he said. In December, LeAndra Estis, who lives in St. Paul, told WCCO having the boost to her family budget because of the refundable tax credit is a huge relief as she tries to make ends meet for her family. She is excited about the advance payments and is among those who opted in. "It's good to have that back end of government assistance, but the reality of the programs are really to graduate you and help you to become self-sufficient, and the Minnesota tax credit — It's just another way of helping people to be self-sufficient," Estis said. But advance payments aren't for everyone: choosing this option could count against a family's SNAP benefits. Taking the lump sum at tax time does not have the same effect. The state launched an online calculator next month for SNAP recipients to see if it impacts them. That's part of the reason Marquart believes only 8% of Minnesotans who qualify for the child tax credit chose to get a portion of it earlier, but he said he thinks that number will grow with time. There are income limits in order to qualify for some of or the full $1,750 child tax credit in Minnesota. To get the maximum refund, income cannot exceed $29,500 for a single filer or $35,000 for married couples filing jointly. The credit phases out completely for families with one child if their annual income is $54,534. But the threshold for the full phase-out increases with more children. For example, a couple with four children would still receive part of that credit if they make $90,000 a year.
