Todd’s Take on the Market
The Dow is set to have its best month since 1987. The S&P 500 climbed another 2.3% last week while the NASDAQ tacked on another 2.97%.
Large technology stocks have led equity markets this year, prompting investors to look for future innovations to drive future returns—after a year in which Tesla was added to the S&P 500 and Exxon was removed.
Last week the Dow broke through 30,000 for the first time. Volatility is subsiding, which now suggests that ‘fear’ is subsiding. Investors/traders and even the algos (algorithms) are growing more optimistic about what the future holds. More talk of when the vaccine will be available is fueling the latest move…along with the sense that any of the election challenges are proving to be, well, anything but a challenge. With each recount, it appears that Joe Biden is pulling further ahead and many of the Trump teams’ State challenges have been denied. No matter what your political affiliation is, the market is apparently Ok with the projected results and the pending resolution.
The pace of first-time filings for jobless claims picked up last week, with the jobs market showing increasing vulnerability to the coronavirus spread. We saw 778,000 new claims vs. the 733,000 expected. All the while, consumer confidence came in slightly below expectations—think COVID concerns.
This week we will get the latest Jobs Report, and this may be an interesting number, with COVID cases climbing and business shutting back down—it may be interesting.
Right now, all of the focus is on the COVID numbers and the transition of the nation’s highest office. Stay tuned and we’ll keep you posted.
Todd Day, MBA
Portfolio Manager
Horizon Financial Services, LLC
