Factbox-U.S. debt ceiling deal: Stocks that could benefit
11:21 am Tuesday, May 30th, 2023
NEW YORK (Reuters) – Here are some stocks that could benefit, according to analysts at U.S. brokerage BTIG, if U.S. lawmakers this week pass a bipartisan deal to raise the $31.4 trillion debt ceiling, avoiding a potentially catastrophic default.
* An agreement to slash funding for the Internal RevenueService by $20 billion is expected to limit the IRS’ ability todevelop an electronic tax filing system that would have competedwith tax preparation software companies including Intuit Inc andH & R Block Inc. * Companies in the U.S. defense complex — such as those inthe S&P 500 Aerospace & Defense index — should receive a boostfrom the approximately 3% rise in defense spending next year andanother 1% increase in financial year 2025 under the deal. * Equitrans Midstream Corp, the developer of the MountainValley Pipeline that runs through West Virginia, is expected tobenefit because the bill would grant the pipeline all necessarypermits from federal authorities. * The package also reinstates student loan paymentsbeginning this fall, which would increase demand forrefinancings and help student loan originators, particularlySoFi Technologies Inc, BTIG said.
(Reporting by Chibuike Oguh in New York; editing by Michelle Price, Lance Tupper and Cynthia Osterman)
