| A Note from Cokie: What we saw at the end of last week and the beginning of this one is a sustained economic rebound, U.S. broad market rose to an all-time high. But remember a third wave is yet to come. It could hit harder than we think and the damage is likely to keep adding up in months to come. There are at least three key factors that we continue to watch—the release of a vaccine to combat Covid-19, the economy, and an additional stimulus package approved. It looks like for now, a vaccine will be distributed soon, allowing economic activity to begin to return to normal. This is good news for the markets, but there continues to be signs of economic stress, especially in the coming months before regaining momentum sometime next year. A fiscal stimulus is important to bridging some of the financial gaps that currently exist. However, we won’t see a full recovery until households and small businesses reopen next year. Many of my clients have expressed “hope” for 2021. As an Alphavest client, you know exactly were you are financially and where you can expect to be going forward! Call me for a free 15-minute consult and checkup! If you have NOT downloaded your copy of the third edition of The Liberated Investor, you can do that now so that you can understand the Wall Street game and play it better! The following is a weekly update from Wealth Enhancement and Preservation. The Week on Wall Street Stocks marched higher last week on an improving outlook for the passage of a fiscal stimulus package. The Dow Jones Industrial Average rose 1.03%, while the Standard & Poor’s 500 tacked on 1.67%. The Nasdaq Composite index gained 2.12% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 0.78%.[1][2][3] |
| A Record Week for Stocks After opening the week with moderate losses amid rising COVID-19 infections, stocks turned higher as investor sentiment was buoyed by the resumption of fiscal stimulus negotiations. As lawmakers discussed various proposals, stocks managed to grind higher. A better-than-expected jobless claims report on Thursday added fuel to the market rally, but the gains evaporated in late-day trading following news by a major pharmaceutical company that it would be slowing its rollout of the vaccine due to logistical challenges.[4] A disappointing jobs report on Friday did not keep investors from bidding stocks higher as the week came to a close, sending the Dow Jones Industrials, S&P 500, and the NASDAQ Composite indices to record high closes.[5] The Start of Holiday Shopping The start of the holiday shopping season provides important insight into the state of the economy and overall consumer confidence. In response to the pandemic, consumers avoided in-store visits over the Thanksgiving weekend. This translated into a 22.4% decline in spending from last year’s levels.[6] However, spending prior to the Thanksgiving-to-Sunday period surged 65.7% from a year earlier, thanks to large retailers introducing Black Friday-like deals as early as mid-October.[7] Of course, the pandemic has led to an acceleration in shopping online. Cyber Monday sales jumped 15.1% over last year’s levels as consumers spent almost $11 billion, making it the largest U.S. online shopping day ever.[8] THIS WEEK: KEY ECONOMIC DATA Wednesday: Gross Domestic Product (GDP), Job Openings and Labor Turnover Survey (JOLTS). Thursday: Consumer Price Index (CPI), Jobless Claims. Friday: Consumer Sentiment. Source: Econoday, December 4, 2020 The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision. THIS WEEK: COMPANIES REPORTING EARNINGS Monday: Coupa Software (COUP) Tuesday: Autozone (AZO), Mongodb, Inc. (MDB), Chewy, Inc. (CHWY) Wednesday: Campbell Soup Company (CPB), Slack Technologies (WORK) Thursday: Lululemon Athletica, Inc. (LULU), Adobe, Inc. (ADBE), Broadcom (AVGO), Costco Wholesale Corp. (COST) Source: Zacks, December 4, 2020 Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice. |
[1] The Wall Street Journal, December 4, 2020
[2] The Wall Street Journal, December 4, 2020
[3] The Wall Street Journal, December 4, 2020
[4] The Wall Street Journal, December 3, 2020
[5] CNBC, December 4, 2020
[6] CNBC, November 30, 2020
[7] CNBC, November 30, 2020