Happy Holidays! While still hovering near an all-time high, the stock market experienced some back and forth movement this week as investors continue to wrestle with weakening economic data and the optimism tied to vaccines and potential fiscal stimulus. From an economic perspective, investors got their first look at November retail sales this week – and the news was not good. Retail sales not only came in weaker than expected, they fell for the first time since April. Notable sales drops were seen in department stores and clothing and electronics retailers. This sales drop occurred due to the end of expanded unemployment benefits – which were part of the original stimulus plan – and the resumption of more restrictive lockdown policies in major cities such as New York. On a more positive note, the first round of COVID-19 vaccinations from Pfizer and BioNTech began in the U.S. Sandra Lindsay, a critical care nurse at Long Island Jewish Medical Center, became the first American to receive the vaccine. Adding to the positive vaccine-driven sentiment, Senate Majority Leader Mitch McConnell pledged that a fiscal stimulus deal would get done, giving investors hope that a package may be delivered before year-end. Any implemented stimulus will help bridge the gap for the economy until vaccines become widely distributed and administered. Lastly, if there was any remaining doubt about the presidential election, the Electoral College confirmed Joe Biden as the next president of the United States. In doing so, they removed another piece of uncertainty for investors. With the election now entirely behind us, all eyes will move to January’s Senate run-off elections in Georgia. If the Republicans hold the Senate, gridlock may become the norm, which the market has been constructive towards thus far. However, if the Democrats win both seats in Georgia, it increases the likelihood that many of President-elect Biden’s proposed policies will be enacted. We will be watching the outcome closely. Merry Christmas and Happy New Year! Market comments based on the Dow Jones Industrial Average, S&P 500, and NASDAQ indexes which are unmanaged and cannot be directly invested into. Past performance is no guarantee of future results. Investing involves risk and the potential to lose principal. Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time and cannot be guaranteed. |
Hendrickson's last 2020 Weekly Market Update
