New ATHs… Echo

December 7, 2020

Market update 2020-12-07.

The S&P 500 advanced 1.7% last week and closed at another record high. It closed just below the 3,700-mark. Nine of the eleven major sectors posted gains. Year to date laggard, energy stocks, lead the way as the yield curve steepened with hopes of more fiscal stimulus. The Nasdaq and the Dow also set all-time highs of their own. A weaker-than-expected November jobs report added to the sense of urgency for more stimulus. The U.S. dollar index hit the lowest level since the Trump tax plan was passed in February 2018. Yields on the 10-year Treasury reached almost 1%. And the “Santa Claus Rally” started November 20.

Forces on the market

Over the weekend, Brexit talks look wobbly as that year-end deadline looms. Record U.S. coronavirus hospitalizations continue while fatality rates decline. California has issued stay-at-home orders for much of the state, while closing hair salons, museums, and theaters. U.S equity futures are down small at the start of the week, 0.4. The 10-year Treasury yield slipped to 0.94% after testing the 1% level for the first time since March, with last week’s 13-bps climb. The FDA meets Thursday to discuss approval of Pfizer’s vaccine after Britain granted emergency-use authorization for quick distribution.

Momentum is building among a bipartisan group of lawmakers around a $908 billion package that includes extending support to the unemployed with a $300 weekly top-up of benefits until March, and more relief for small businesses.

Resources

  • Our complete second half outlook 2020 has been also posted since July and can be found by clicking here.

 

Weekly market updates contain general information and expresses views of Oak Harvest Investment Services. Data, Articles, and information cited are believed to be reliable at the time of creation, but are not guaranteed. Nothing in this content is intended as, nor should it be regarded as, personalized investment advice. Strategies and ideas discussed may not be right for you.  Views and opinions expressed may change without notice and do not constitute a recommendation, or an offer or solicitation to buy or sell securities. In addition, Oak Harvest makes no assurance as to the accuracy of any forecast made. Indexes like the S&P 500 are not available for direct investment and your results may differ. Past performance is not indicative of future results. Investing involves the risk of loss.