Telemus Weekly Market Review December 21st - December 25th, 2020
December 21 – December 25 Week in Review
It was a mixed bag for the markets last week in holiday shortened trading. The large-cap indices consolidated near record highs, while the small cap Russell 2000 rallied another 1.7% to close above the level it last reached back in 2000 and at new record highs. The S&P 500 edged lower, down 0.2%, while the Nasdaq Composite, up 0.4%, and Dow Jones Industrial Average, up 0.1%, eked out gains.
Positive factors last week included a 4.2% gain in Apple amid news that it's aiming to produce passenger vehicles with self-driving capabilities and battery technology, the Fed permitting large banks to repurchase shares in the first quarter, albeit with some limitations, and President Trump's insistence that Congress increase the stimulus checks to $2000 per individual from $600. House Speaker Pelosi seized on the opportunity and scheduled a full House vote on Monday to increase the size of the stimulus checks as noted above, but Republicans appeared less willing to compromise.
The large-cap sectors struggled to gain traction, except for the information technology and financials sectors that were aided by Apple and the Fed. Five sectors declined at least 1.0%, including a 2.0% decline in the energy sector. Small-cap stocks carved their own path however, which was rooted in the U.S. economic recovery narrative for 2021 after noticeably underperforming their large-cap brethren since 2018.
On the coronavirus front, the market was ostensibly worried about a new strain of coronavirus primarily in the UK that spreads 70% faster than other known variants. Follow-up reports suggested that the new strain isn't more deadly or resistant to vaccines. Separately, Pfizer and BioNTech reached a second agreement with the U.S. government to supply an additional 100 million doses of their COVID-19 vaccine.
In the bond markets last week the 2 year Treasury yield was unchanged at 0.12% and the 10 year Treasury yield was down two basis points to 0.93%. The Treasury market closed at 2:00 p.m. ET on Thursday.
In other markets last week the U.S. Dollar Index closed marginally higher at 90.39, WTI crude closed basically unchanged for the week at $48.30 a barrel and gold closed at $1,882.60 an ounce, down slightly for the week.
December 28 – January 1 Economic Calendar
- Monday
- Dallas Fed Manufacturing Survey
10:30 AM ET - Fed Balance Sheet
4:30 PM ET - Money Supply
4:30 PM ET
- Tuesday
- Redbook
8:55 AM ET - Case-Shiller House Price Index
9:00 AM ET
- Wednesday
- International Trade in Goods [Advance]
8:30 AM ET - Retail Inventories (Advance)
8:30 AM ET - Wholesale Inventories (Advance)
8:30 AM ET - Chicago PMI
9:45 AM ET - Pending Home Sales Index
10:00 AM ET - State Street Investor Confidence Index
10:00 AM ET - EIA Petroleum Status Report
10:30 AM ET - Survey of Business Uncertainty
11:00 AM ET - Farm Prices
3:00 PM ET
- Thursday
Thursday - Jobless Claims
8:30 AM ET - EIA Natural Gas Report
10:30 AM ET - Baker Hughes Rig Count
1:00 PM ET - Fed Balance Sheet
4:30 PM ET - Money Supply
4:30 PM ET
- Friday
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