Rally Continues Despite Stimulus Impasse

Hi Everyone,

The stock market finished mixed for the second day in a row following another choppy and quiet session on Friday. The Dow was up 34, or 0.1%, to 27,931, the Nasdaq lost 23, or 0.2%, to 11,019, while the S&P 500 rose by 1, or 0.02%, to 3,373. Decliners outnumbered advancing issues by a 6-to-5 ratio on the NYSE, where volume was light.

Traders said that the bullish consolidation continued on Wall Street Friday, and despite the European worries, U.S. stocks remained very stable. As one trader explained, “The new travel restrictions weighed heavily on European markets on Friday, but even though domestic equities failed to add to their weekly gains, price action remained bullish, and volatility stayed comfortingly low.”

Relatively quiet and bullish trading continued this week on Wall Street, in the face of the U.S.-China tensions, the lack of a stimulus deal, the international headwinds, and the active global COVID “hot-spots.” Earnings season concluded with another batch of mostly positive reports, and, in total, 83% of the members of the S&P 500 beat estimates, which is the highest figure since 2008. The slow COVID-related improvements continued throughout the week in the U.S., as even though the number of infections crossed 5 million, the spreading of the virus continues to slow. The hardest-hit industries and the key cyclical sectors popped higher thanks to the positive domestic trends, and even though the market-leading tech sector had a rough start to the week, the major indices all ended the week in the green.

I am going to conclude each commentary with a quote of the day.

“Act as if what you do makes a difference. It does.”

William James

As always, have a great evening and stay tuned!!!

Joe

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