Stocks Up As Infrastructure And Tax Plan Announced  Image: Bigstock Stocks closed mostly higher yesterday with the S&P making a new intraday high. The administration announced their $2.25 trillion infrastructure package yesterday, along with the tax hikes to pay for it. The spending will undoubtedly provide an additional boost to the economy, while the tax hikes on corporations will present a drag. None of this is set in stone yet. And the final package could look much different. That's true for the spending portion and the taxing portion. It appears that part 2 of the plan, which could add an additional $1 trillion to the price tag, and come with a whole new set of tax proposals, this time on individuals, won't be unveiled until sometime in April. In the meantime, the market has at least some semblance of what's to come. In other news, yesterday's MBA Mortgage Applications were off by -2.2%, with both refi's and purchases ticking lower. The Chicago Purchasing Manager Index rose to 66.3, beating last month's 59.5 and views for 60.3. The State Street Investor Confidence Index rose as well, going from 91.9 to 93.9. The European component gained 12.6 points at 90.7; North America gained 1.1 points at 94.4; although Asia declined by -4.9 points to 93.2. And the ADP Employment Report showed private payrolls increasing by 517,000 new jobs vs. the 500K that was estimated. This comes ahead of Friday's official Employment Situation report which has the consensus at 625K (538K for the private sector and 87K for the public), while the unemployment rate is expected to tick down from 6.2% to 6.0%. But before that happens, we'll get another look at jobs with today's Weekly Jobless Claims, and the Challenger Job-Cut Report. We'll also get readings on manufacturing with the PMI Manufacturing report, and the ISM Manufacturing Index, along with readings on construction with the Construction Spending report. The economy continues to recover, with big growth forecasts ahead. And that suggests big market moves ahead as well. But the next leg up is likely to look a lot different than the moves that preceded it. Very soon we'll see unprecedented pent-up economic demand meet an unprecedented amount of stimulus money. And certain industries are poised to benefit more than others. But we're also going to see one of the biggest tax hikes in decades. And that too will impact some companies differently than others. We're already seeing the rotation begin because of it. And it looks like even more is on its way. So don't get left behind. To learn how to position yourself to take full advantage of it, be sure to read our latest commentary... A Big Change Is Coming For The Markets And How To Get Ready Best,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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