[Market Madness] Edition 0122
A slight digression
What’s new
Administrative topics and an introduction
Well folks, there was not much resolve in the markets last week as the rallies ran out of steam. Let’s get some COVID updates out of the way before the finance news.
COVID 19 is continuing to prove a formidable foe here in the U.S. and elsewhere, with the numbers continuing to grow. With Thanksgiving week ahead of us, the CDC is urging folks to avoid traveling and keep contact to immediate family. Pfizer and team are asking the FDA for emergency authorization to begin producing their vaccine for immediate distribution. If granted, which is 99.999% likely, distribution will still be a slow and timely process, targeting first line (essential) workers first, and then working their way outward to the general population. Even then, health experts believe that the return to normal is still going to be a multi-year process, including the use of masks and social distancing efforts.
Let’s get into the finance, shall we?
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Fundamentals
Where did the markets end last week?
U.S. Indices 5 Day Performance
Dow Jones: -0.65%
S&P 500: -0.73%
NASDAQ: +0.25%
Asia and Europe 5 Day Performance
Nikkei 225: +0.56%
Hang Seng: +1.16%
FTSE 100: +0.57%
DAX: +0.46%
Rates, Spot Prices, and ‘Good to Knows’
U.S. Dollar Index: 92.39
US 10 YR: 0.895%
Crude OIL: $42.42
Spot Gold: $1,869.10
Market Madness Portfolio: +14.61% YTD
TEDRATE: 0.13
LIBOR (3 month): 0.213%
COVID 19 Global Cases: 58,274,308 (updated Nov. 22, 2020)
Weekly update
An article by Christopher
Markets performed subpar this week, ending the week worse than we started it and bringing about a pause to the recent red-hot rally. The vaccine news was not enough to continue propelling stocks up to end the week in the green, but they tried. COVID 19 cases continue to cause issues for investors, as cases grow to daily records each day. Needless to say, the virus and case numbers still mean a lot to investors who still cannot see or predict an end to the virus. JPMorgan released their Q1 GDP economic prediction, and it is not pretty.
Looking at more near-term economic news, we’re seeing some digression from previous weeks as jobless claims jumped up again this past week. U.S. retail sales increased again in October, but at a slower rate, signaling a weakening in the longer-term spending trend. This trend will be interesting to follow as many reports are coming out suggesting that consumers are once again ‘panic buying’ a majority of household goods, including the good ‘ole toilet paper. Bill Gates came out with a bold prediction this week, citing a 50% reduction in business related travel in a post-COVID world. This reduction, if materialized, would be a devastating blow to the airline industry.
Whispers continue about the potential for another round of stimulus from Congress, but that is still yet to materialize. Mad Money’s Jim Cramer is citing the downfall of small business due to Congress’ inability to come together and act accordingly. Treasury Secretary Mnuchin continues to divert back to the Fed, claiming much more can be done from their side as well. Naturally, a political appointee is stating that there are no political woes impacting Congress’ ability to pass stimulus (that’s too funny to be taken seriously).
Elsewhere, China borrowed at negative rates for the first time ever, crude oil is still hovering above $40/barrel, and overseas indices performed well in this past week, all adding to the strong gains from the week before.
Quick Takes
To fill in the gaps
On Moderna’s vaccine developments. (via WSJ)
Senate Republicans fail to confirm the latest Fed board member. (via WSJ)
Donnie sweetens up to Michigan lawmakers to change the outcome of the election. (via WSJ)
Resolute Investment Managers try to out CEO Cathie Wood from her own firm (Ark Investment Management). (via Institutional Investor)
A speculation about Bitcoin. (via Barron’s)
Tesla invited to join the S&P 500 Index. (via WSJ)
Buzzfeed is buying HuffPost. (via WSJ)
A look into Wirecard. (via WSJ)
Wish releases their IPO paperwork. (via CNBC)
In October, U.S. home sales rose to record highs. (via WSJ)
A new entrepreneur’s economy? (via WSJ)
Southwest sweeps the competition. (via WSJ)
FAA clears the 737 MAX for flight. (via WSJ)
Nasdaq purchases anti-financial crime firm Verafin for $2.75 billion. (via WSJ)
U.S. student loan losses projected to cost U.S. over $400 billion. (via WSJ)
Top Goldman dealmaker seeks new opportunity running Michael Dell’s investment firm. (via WSJ)
Why Tesla is winning in the EV battle. (via WSJ)
General Banter
What’s on the minds of our editors and writers
Let’s all just have a laugh:
Reader’s Corner
A place for suggestions for readers like you
The reader might enjoy the incredibly moving memoir on life by Matthew McConaughey titled “Greenlights.” I just started it and it is really an enjoyable read.
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