Market indexes finally broke through — for the first time in five trading days for the S&P 500 — on increased positive sentiment that Congress will agree on a relief package before the body breaks from Capitol Hill for the holidays. Though it has seemed elusive at times — and is not yet set in stone — the S&P 500 had its strongest trading day of the month, +1.3%, followed by the Nasdaq’s +1.25% and the Dow up 338 points, +1.13%.
The Russell 2000 ran away with the day, however: +2.4% on the day and +17% year to date. That trails only the Nasdaq, which is +40% year to date and looking for its best year since 2009. The small-cap Russell index is a particularly good sign for the markets And the economy as a whole, indicating “risk-on” market sentiment as investors envision a pandemic-free global economy, and perhaps sooner than later.
Utilities and Energy both rose 2% on the day, showing some love for the industries most beaten down during the heart of the pandemic. Financials, another casualty of the coronavirus environment, rose 1.7% today, followed by Tech at +1.6% and Consumer Staples +1.5%. This illustrates a well-rounded buying of stocks on the day, as opposed to what we saw earlier in the year, when “stay at home” tech companies carried the indexes on their backs.
As for Capitol Hill, it was encouraging to hear Senate leader Mitch McConnell (R-Kentucky) say, “We’re not leaving without a Covid package — no matter how long it takes.” Observers had taken note that the House had already signed two stimulus bills since the CARES Act expired last summer, with Senate leadership not entertaining wither to a floor vote. Now that McConnell appears on board to bring about actual results, market sentiment did not miss this opportunity to buy equities today.
Tomorrow morning we’ll see new data on Retail Sales and PMI Manufacturing and Services. Also inventories and a press conference from Fed Chair Jay Powell in the afternoon may provide further indications how far and how fast we might expect the economy to crank up in the early part of 2021.
Questions or comments about this article and/or its author? Click here>>
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>
Image: Bigstock
Markets Break to Upside on Congressional Relief Promise
Market indexes finally broke through — for the first time in five trading days for the S&P 500 — on increased positive sentiment that Congress will agree on a relief package before the body breaks from Capitol Hill for the holidays. Though it has seemed elusive at times — and is not yet set in stone — the S&P 500 had its strongest trading day of the month, +1.3%, followed by the Nasdaq’s +1.25% and the Dow up 338 points, +1.13%.
The Russell 2000 ran away with the day, however: +2.4% on the day and +17% year to date. That trails only the Nasdaq, which is +40% year to date and looking for its best year since 2009. The small-cap Russell index is a particularly good sign for the markets And the economy as a whole, indicating “risk-on” market sentiment as investors envision a pandemic-free global economy, and perhaps sooner than later.
Utilities and Energy both rose 2% on the day, showing some love for the industries most beaten down during the heart of the pandemic. Financials, another casualty of the coronavirus environment, rose 1.7% today, followed by Tech at +1.6% and Consumer Staples +1.5%. This illustrates a well-rounded buying of stocks on the day, as opposed to what we saw earlier in the year, when “stay at home” tech companies carried the indexes on their backs.
As for Capitol Hill, it was encouraging to hear Senate leader Mitch McConnell (R-Kentucky) say, “We’re not leaving without a Covid package — no matter how long it takes.” Observers had taken note that the House had already signed two stimulus bills since the CARES Act expired last summer, with Senate leadership not entertaining wither to a floor vote. Now that McConnell appears on board to bring about actual results, market sentiment did not miss this opportunity to buy equities today.
Tomorrow morning we’ll see new data on Retail Sales and PMI Manufacturing and Services. Also inventories and a press conference from Fed Chair Jay Powell in the afternoon may provide further indications how far and how fast we might expect the economy to crank up in the early part of 2021.
Questions or comments about this article and/or its author? Click here>>
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>