Markets “In a Nutshell” for December 10, 2020
Investment Week at a Glance
Stocks finished up for the week. The Dow Jones Industrial Average was up 1.03%, the S&P 500 rose 1.67%, the New York Stock Exchange Composite (2,000 stocks) rose 1.54% and the average investors index (Value Line Index) was up 2.65%. Foreign stocks (DJ Global ex U.S.) were up 1.38%. Bond prices were lower for the week, with the 10-year U.S. Treasury ending the week 13 basis points higher at 0.97%. (Data source: Wall Street Journal)
Stocks End November on High Note
Stocks ended the best month of November since 1928 last Monday and continued the week with a persistent climb higher. The S&P 500 was up 10.7% during the month, while the Dow was up an even higher 11.8%. Much of this spark could be attributable towards vaccine effectiveness and distribution hopes for early 2021, as well as an avoidance of some of the worst case political outcomes. Government aid efforts have picked up steam once again since the end of last week and the surprising openness to negotiations regarding a bipartisan proposal propelled stocks higher throughout the week. The new spending, as of right now, would likely be around $1 trillion and not include any direct payments to individuals, but be more focused on state aid and funding for vaccine distribution. This is more than likely the last chance a Trump administration would have to pass another support bill and the likelihood is still difficult to estimate, given the previous failures since the CARES Act was passed. (Barron’s)
Jobs Report Disappoints
The jobs report for November was released last Friday and it showed a slowdown in the pace of job gains that has economists worried for the ongoing recovery out of the current recession. Total job gains for the month were 245,000 and the unemployment rate fell to 6.7%, both disappointing compared to estimates for the month, but much better than anyone could have hoped for even as late as last summer. One of the hardest hit industries in the report was the restaurant industry, which lost over 17,000 jobs last month, highlighting the returning restrictions on dining that are being put back in place in certain areas. What is causing the most worry is the outlook for the December jobs report, which will likely show a much clearer picture of the effect on the economy and the businesses that will not be able to financially survive without any government assistance to go along with these restrictions. (Barron’s)
How much has total global debt risen so far this year?
Have a Great Week!
4. Total global debt has risen $15 trillion so far this year, to reach a total of $277 trillion. (Barron’s)