Raphael Stevens

The U.S. Supreme Court has rejected a challenge to overturn the $10,000 limit on the federal deduction for state and local taxes, which is known as SALT.
Without an extension from Congress, the $10,000 SALT cap will automatically sunset in 2026, restoring the full tax break.

Rep. Judy Chu, D-Calif., speaks during a news conference announcing the State and Local Taxes (SALT) Caucus outside the U.S. Capitol.
Sarah Silbiger | Bloomberg | Getty Images

The U.S. Supreme Court has rejected a challenge from New York and three other states to overturn the $10,000 limit on the federal deduction for state and local taxes, which is known as SALT, enacted through the Republican’s 2017 tax overhaul. 
The order denied a request from New York, Connecticut, Maryland and New Jersey to review an October ruling from the U.S. Court of Appeals for the Second Circuit, which rejected arguments that the SALT cap is an “unconstitutional assault” on the states’ taxing decisions.

“This decision by the Supreme Court underlines the fact that any change to the SALT cap will come from an intentional act of Congress, not through the courts,” said Garrett Watson, senior policy analyst at the Tax Foundation.
“The legal challenges to the cap itself were always a longshot, so this decision by the Supreme Court to decline the review of the case was not totally unexpected,” he said.
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The SALT cap has been a pain point for high-tax states because residents can’t deduct more than $10,000 in state and local levies on their federal returns. And some lawmakers from these areas have been fighting for relief as part of a Congressional SALT Caucus.

With a slim Democratic majority, the $10,000 limit was a sticking point in Build Back Better negotiations, and House lawmakers in November passed an $80,000 SALT cap through 2030 as part of their $1.75 trillion spending package. However, Sen. Joe Manchin, D-W.Va., blocked the plan in the Senate, halting momentum for SALT relief. 

“I do expect this decision will revive some discussion about if and how the deduction cap should be changed moving forward, especially in the context of any revised Build Back Better package in Congress,” Watson said.

There remains skepticism of SALT cap changes in both chambers, which may make any legislative attempt to alter the cap an uphill battle at best.

Garrett Watson
senior policy analyst at the Tax Foundation

“There remains skepticism of SALT cap changes in both chambers, which may make any legislative attempt to alter the cap an uphill battle at best,” he added.
Without an extension from Congress, the $10,000 SALT limit will automatically sunset in 2026, along with several tax breaks from the Republican legislation.
In the meantime, many states have SALT cap workarounds for pass-through businesses, allowing owners to bypass the limit by paying for part of their state taxes through their company.  

Other roadblocks

While the SALT cap has been a hot-button issue in high-tax states and Congress, there are other economic factors to consider, policy experts say.
“There was the pandemic, and the economic recovery from the pandemic, and these are the things that are driving current state policy decisions, not the state and local tax deduction,” said Richard Auxier, senior policy associate at the Urban-Brookings Tax Policy Center.
Those affected by the $10,000 SALT limit are affluent homeowners with “the ability to make a lot of political noise,” he said, and many have benefited from other provisions of the Tax Cuts and Jobs Act.
If repealed, the top 20% of taxpayers may receive over 96% of the relief, according to a Tax Policy Center report, which would affect only 9% of American households. 

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The CDC said Wednesday that it requested the Justice Department to proceed with an appeal of a ruling that lifted a travel mask mandate.
The Department of Justice said in a statement that it filed a notice of appeal in the case involving Health Freedom Defense Fund Inc., et al., versus Biden, et al.
On Monday, U.S. District Judge Kathryn Kimball Mizelle ruled in that case that the travel mask mandate was unlawful.

WASHINGTON — The U.S. Centers for Disease Control and Prevention said Wednesday that it requested the Justice Department to proceed with an appeal of a ruling that lifted a travel mask mandate.
“CDC believes this is a lawful order, well within CDC’s legal authority to protect public health. CDC continues to recommend that people wear masks in all indoor public transportation settings,” the agency wrote in a statement adding that it will continue to monitor public health conditions to “determine whether such an order remains necessary.”

The Department of Justice said in a statement that it filed a notice of appeal in the case involving Health Freedom Defense Fund, Inc., et al., versus Biden, et al.
On Monday, U.S. District Judge Kathryn Kimball Mizelle ruled in that case that the mask mandate on planes and other forms of public transportation was unlawful. The CDC’s mask mandate, which was put in place to mitigate the spread of Covid-19, was enacted in February 2021 and extended to May 3.

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The new appeal is largely expected to have no immediate effect given that the Justice Department has not yet made an attempt to block Mizelle’s order. The appeal process is slated to unfold over a number of months.
On the heels of Mizelle’s decision, the White House said that it will likely appeal the decision but that the Transportation Security Administration will not enforce the order on public transport while the ruling is reviewed.
Read more: Faces show relief, confusion and disappointment as masks come off on planes

Some transportation companies, such as the airlines United and Delta and the railroad operator Amtrak, were quick to announce Monday evening that wearing masks was now optional for passengers and employees using their travel services.
If the mandate is reinstated it raises questions about enforcement. The FAA received record numbers of reports of unruly passengers last year, 70% of them tied to disputes over the mask mandate.
Airlines including Delta, Alaska and United said this week that they would start allowing travelers they had banned for not complying with mask mandate back on flights on a case-by-case basis.
“Any further disregard for the policies that keep us all safe will result in placement on Delta’s permanent no-fly list,” Delta said in a statement late Wednesday. “Customers who demonstrated egregious behavior and are already on the permanent no-fly list remain barred from flying with Delta.”

CNBC’s Kevin Breuninger and Leslie Josephs contributed to this report from New York.

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“The charts and the history, as interpreted by Larry Williams, suggest one crazy thing, which is that inflation could soon peak, and … the stock market’s bottoming and due for a nice broad rally given from here to the end of June,” the “Mad Money” host said.
“This methodology can’t tell you the size of a potential move, but it’s surprisingly reliable when it comes to predicting the market’s overall direction,” he added.

CNBC’s Jim Cramer on Wednesday said inflation could peak and the market could recover soon, leaning on chart analysis from legendary market technician Larry Williams.
“The charts and the history, as interpreted by Larry Williams, suggest one crazy thing, which is that inflation could soon peak, and then the second crazy thing, which is the stock market’s bottoming and due for a nice broad rally given from here to the end of June. Given his track record though, it wouldn’t surprise me if he’s right on both,” the “Mad Money” host said.

“Of course, his forecast also suggests we’ll get a pullback going into August, with stocks rebounding again as we approach the end of the summer,” he added. “This methodology can’t tell you the size of a potential move, but it’s surprisingly reliable when it comes to predicting the market’s overall direction.”
To explain William’s methodology, Cramer first explained that according to the technician, there are two ways of approaching inflation:

Sticky consumer price index. This measures the cost of a basket of important items that change price slowly.
Flexible consumer price index. This measures the cost of a basket of important items that change price rapidly.

In the chart below, the sticky price CPI is in orange while the flexible price CPI is in black.

Arrows pointing outwards

Williams noticed that the flexible CPI is at a record high and in the zone where inflation usually peaks, Cramer said.
The below chart shows the three-month rate of change for the core flexible CPI in black with the 12-month rate of change in brown going back to 2016.

Arrows pointing outwards

The flexible consumer price index is often a reliable leading indicator for the sticky consumer price index according to Williams, Cramer said – meaning that after flexible goods prices start climbing, stickier goods start catching up. This chart shows the flexible price CPI peaked last year.
“This tells Larry that we might already be turning the corner on inflation. It’s just not obvious to anyone on the surface yet,” Cramer said.
Also noteworthy is that inflation has historically stayed above 2.5% for about 29 months on average before dropping, according to Williams. Inflation has held above 2.5% for 14 months, meaning “we might already be halfway through,” Cramer said.
Williams also observed that the CPI has a dominant five-year cycle, which suggests that it should peak around the middle of this year and keep tumbling through 2025, Cramer said. Here is the chart showing the cycle:

Arrows pointing outwards

The Advance Decline Line, a cumulative indicator measuring the number of stocks that are increasing daily compared to the number of stocks that are decreasing, is yet another tool Williams uses, Cramer said. 
“Williams sees it as a terrific way to get a real sense of the stock market’s internal strength. … But he also likes to use the advance/decline line to make cyclical projections,” Cramer said.
“If you can get a sense of where the advance/decline line might be headed, then you’ll know when broad-based rallies or declines are most likely to occur. For Williams, this is a more stable way to take the temperature of the market than looking at a particular index,” he added.
Here is a chart of the advance/decline line going back to May 2021. Williams’ cyclical forecast is in red:

Arrows pointing outwards

“As he sees it, the dominant short-term cycle in the advance/decline line has lasted for about 60 days, although there’s also a yearly cycle of about 240 days. The red line here combines both of those cycles to give us a forecast,” Cramer said.
He added that the forecast suggests to Williams that it’s time for the advance/decline line to go higher, which would mean a “major, broad-based rally in the stock market” that could carry into May, and possibly into the end of June.
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It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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Intuitive Surgical Inc: “ISRG is one of those stocks – you must not look at it on a day-to-day basis. You look at it on a year-to-year basis, that’s how good their machines are.”

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Banco Santander SA: “I looked at it multiple times to own it for the Charitable Trust. I just can’t summon myself to pull the trigger. I’m afraid I’ll move it to $4. I think Banco Santander is excellent.”

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Uranium Energy Corp: “Very speculative stock. It’s had a very big run. Be ready to get cut in half or double. And those are typically the kinds of stocks that I do not recommend.”

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OneMain Holdings Inc: “Too risky at this point in the cycle, particularly if the Fed really does give us a real slowdown.”

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Brunswick Corp: “I’m going to be really straightforward here. The market doesn’t like this stock and doesn’t think it will come back, and I’m trying to disagree with the market, because I think it’s such a good company.”

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Regions Financial Corp: “Very smart bank. Very well run … This is a terrific company. Believe me, it won’t stay independent forever it if stays down at this price. It’s just way too good.”

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AstraZeneca PLC: “I can’t chase it up here. I think it’s gotten more expensive versus some other very, very good drug companies. So I’m going to have to say that you should take a pass on that.”
Disclosure: Cramer’s Charitable Trust owns shares of Morgan Stanley.

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CNBC’s Jim Cramer on Wednesday advised investors to buy Halliburton stock while it’s down after a less-than-ideal quarter from industry peer Baker Hughes.
“I think you’ve got to use this rare opportunity to buy a best-of-breed stock on weakness, which is exactly what we did for the Charitable Trust,” the “Mad Money” host said.

CNBC’s Jim Cramer on Wednesday advised investors to buy Halliburton stock while it’s down after a less-than-ideal quarter from industry peer Baker Hughes.
Cramer said that though Halliburton posted “fantastic” results, the stock got hit after rival Baker Hughes posted a bad quarter.

“I think you’ve got to use this rare opportunity to buy a best-of-breed stock on weakness, which is exactly what we did for the Charitable Trust,” the “Mad Money” host said.
The company Cramer calls a “best-of-breed colossus” beat Wall Street expectations in its first-quarter earnings on Tuesday. Baker Hughes missed expectations in its latest quarter, which Cramer said dragged down the rest of the industry’s companies, including Halliburton.
Halliburton stock fell 4% on Wednesday.
Here are some of Cramer’s key takeaways from Halliburton’s quarterly results and earnings call. 

The company raised its customer spending forecast. “The one thing that’s worried me here is that, even though the crude price has skyrocketed, domestic oil producers have been very disciplined about putting new money to work. … But the industry can only be so disciplined with oil at over a hundred bucks a barrel,” Cramer said.
According to HAL, the oil and gas industry now prioritizes investing in shorter-cycle investments. “That is fabulous for Halliburton, because these short-cycle projects are like bread and butter,” he said.
Cramer believes Halliburton is on track to grow even more in the next couple of years. Cramer’s Investing Club raised its price target for the company to $45, which is around 18.4x earnings expectations for fiscal year 2023.

Disclosure: Cramer’s Charitable Trust owns shares of Halliburton.

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Lululemon is launching a membership program — and it’s about more than workout clothes.
The athletic apparel retailer will debut this fall two tiers of memberships, one free and one paid, in a bid to build a stronger base of loyal customers.
The offerings come with exclusive access to items, events and fitness classes via the company’s at-home fitness business.

Lululemon Athletica store exterior, Ponce City Market.
John Greim | LightRocket | Getty Images

Lululemon is launching a membership program — and it’s about more than workout clothes.
The athletic apparel retailer will debut two tiers of memberships, one free and one paid, in a bid to build a stronger base of loyal customers. The offerings come with exclusive access to items, events and fitness classes.

Lululemon says the move could help the retailer lower its cost to acquire customers, as it creates the “most immersive fitness marketplace” in the industry.
While Lululemon certainly isn’t the first retailer to launch a unique loyalty program, not many apparel businesses offer an option that customers pay for each month. Lululemon could set an example for others to follow as the company and its peers seek new revenue streams beyond the rack.

The free membership option will give users early access to Lululemon product drops and exclusive items, as well as invitations to in-person community events, the company announced Wednesday during an analyst day event.
The second option will cost members $39 per month, the same price as an all-access subscription to Lululemon at-home fitness platform, Mirror. Current Mirror users will be rolled into this new subscription tier at no additional charge, the company said, which will also offer workout content from a number of studios that Lululemon is partnering with, including Rumble, Y7, Pure Barre and DogPound.
Paid subscribers will also receive all of the perks included in the free tier, when both options officially debut in the fall.

“We want to continue to add as much value as we can in that $39 membership tier as possible,” said Michael Aragon, chief executive officer of Lululemon’s Mirror, in his first media interview since joining the company. “It’s becoming a growth engine for Lululemon overall.”
Aragon, a former Amazon executive, took over the chief executive role for Mirror in mid-January. His job is to also oversee Lululemon’s broader digital fitness aspirations. Lululemon acquired Mirror for $500 million in 2020, at a time when connected fitness companies such as Peloton, Tonal and Hydrow were seeing explosive growth with consumers stuck at home and gyms seen as unsafe.
Lululemon has since rolled out Mirror shop-in-shops, where customers can test out one of Mirror’s $1,495 devices, in roughly 200 locations across North America.
With its membership push, Lululemon hopes to introduce the Mirror brand to a wider audience, while also giving current Mirror subscribers more bang for their buck.
Lululemon experimented with a loyalty program in 2018, before the Covid pandemic and the retailer’s Mirror deal. In the trial — which ran in a handful of cities across the U.S. and Canada — members were charged $128 annually for perks such as free shipping, workout classes and special events.
Nikki Neuburger, Lululemon’s chief brand officer, said the company was able to learn from the pilot what its customers value most: priority access to merchandise, invitations to events and unique fitness content.
“The goal here is to create one connected community across Lululemon and Mirror,” she said.
According to Neuburger and Aragon, Lululemon is attracting new customers through Mirror who hadn’t shopped at the retailer before. Mirror subscribers also spend “significantly more” on average than the typical Lululemon customer, they said.
“These deals aren’t just about content deals,” said Aragon. “It’s about getting [people] into the Lululemon lifestyle, and that includes wearing our gear.”
Lululemon’s expanded fitness offering could make the retailer a closer rival to a company like ClassPass, now owned by Mindbody, which lets users sign up for workout classes from a number of boutique studios as well as national chains — on a subscription basis. 
It’s not entirely uncommon for athletic apparel brands to venture down this path, either. Alo Yoga, known for its yoga apparel and endorsed by reality TV celebrity Kendall Jenner, has a $20-per-month subscription program to its own yoga classes. Gap’s Athleta brand teamed up with Obe Fitness to add a fitness component to its loyalty program.
Lululemon also on Wednesday announced new financial targets for 2026, forecasting annual revenue of $12.5 billion by 2026.
Its shares closed the day down nearly 5%, at $385.40. The stock has fallen roughly 1.5% year to date.

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