From Ian Cooper, Author Trigger Point Trade Alerts
Keep an eye on infrastructure stocks.
While both sides of the aisle still can’t agree on what the bill should include, or even how to pay for it, Democrats say they’re ready to move forward with or without Republican support.
They can do so through budget reconciliation.
The Democrats unveiled a $2 trillion plan, and would raise the corporate tax rate to 28% to fund it. That version of the bill would reportedly include putting $621 billion into transportation infrastructure such as bridges, roads, public transit, ports, airports and electric vehicle development, and $300 billion into improving drinking-water infrastructure, expanding broadband access and upgrading electric grids, according to CNBC.
“The Republican plan includes $506 billion for roads, bridges and major infrastructure projects, including $4 billion for electric vehicles. It also includes $98 billion for public transit and $72 billion for water infrastructure.”
However, both sides aren’t budging much at the moment.
CNBC also noted, “To reach a deal, the sides would have to resolve not only a gap in the price tag but also differing visions of how to offset the spending. In their counteroffer, Republicans again rejected Biden’s call to raise corporate taxes, contending they could cover infrastructure costs with funds already allocated by Congress or with transportation user fees.”
Hopefully, they’ll figure something out that’ll be good for the U.S.
Any signs of progress could be big news for the SPDR S&P Global Infrastructure ETF (GII), the iShares Global Infrastructure Index ETF (IGF), Vulcan Materials (VMC), Fluor Corp. (FLR), United States Steel (X), Caterpillar (CAT), Nucor (NUE), and Freeport McMoRan (FCX).