Good Evening. The major stock indexes on Wall Street soared for the second day in a row on Tuesday. The winning streak continued as investors hoped for a ceasefire agreement between Russia and Ukraine.
The S&P 500 index gained 1.23%, while the Dow Jones gained roughly 1%. Not to be outdone, the Nasdaq was up 1.84%, boosted by a rebound in the sector.
BUYOUT
Nielsen (NLSN) has been acquired by a group of private equity companies led by Elliott Management subsidiary Evergreen Coast Capital Corp. and Brookfield Asset Management. The all-cash deal is valued valued at $16 billion, including debt.
The transaction offers $28 per share for Nielsen, a 60% premium since the purchase talks began in early March.
The deal comes days after the video and television rating company turned down offers from another group of investors.
As of closing, Nielsen’s stock had risen 20.31% to $26.72 per share.
GAS HOLIDAY
There’s no doubt gas prices are sky high right now. However, a few states are doing something some of your friends have never been able to do: pitch in for gas.
- Georgia’s $0.29/gallon gas tax will be suspended until the end of May.
- Connecticut’s $0.25/gallon gas tax will be suspended until June 30.
- The $0.361 per gallon tax in Maryland will be postponed until mid-April.
- Florida’s $0.25 sales tax will be repealed, but only after the tourist season has ended in October.
The average price of gas in the United States is $4.24 a gallon, up nearly 48% from last year. State and federal taxes account for a significant portion of that cost. These taxes are used to pay for infrastructure projects and highway repair. While drivers are sure to be excited to save a few pennies (or spend them on a hot gas station corn dog), some experts warn that a “gas tax holiday” could do more harm than good.
Given the uncertainty surrounding fuel prices—with the crisis in Ukraine robbing the market of supply – there’s little evidence that they’ll fall any time soon. Temporary tax suspensions could result in sticker shock when prices spike by, say, 30 cents after the holiday ends.
A fall in gas costs is also a possibility, which might lead to an increase in demand. With summer approaching and everyone looking up “how far to the beach,” adding extra incentives to drive while petrol supplies are scarce could exacerbate the problem of high gas prices.
Some economists say that if you truly want to aid residents who are struggling, you should forego the gas tax holiday and instead send them cash. A similar strategy is being considered in California. Governor Gavin Newsom has proposed sending a $400 debit card to car owners in the state, coupled with three months of free public transportation, to encourage them to park their cars in the garage.