Markets “In a Nutshell” for March 8, 2021
Investment Week at a Glance
Stocks finished mixed for the week. The Dow Jones Industrial Average was up 1.82%, the S&P 500 rose 0.81%, the New York Stock Exchange Composite (2,000 stocks) rose 1.61% and the average investors index (Value Line Index) was up 1.65%. Foreign stocks (DJ Global ex U.S.) were down 0.36%. Bond prices were lower for the week, with the 10-year U.S. Treasury ending the week 12 basis points higher at 1.56%. (Data source: Wall Street Journal)
Stocks Mostly Rise in Volatile Week
Stocks mostly rose for the week, in most part due to the much better than expected jobs report released Friday, in an otherwise dangerously volatile week. Financial markets continue to be fearful of future inflation that is expected to be spurred by a combination of the hopeful economic reopening, low interest rates and the wave of stimulus that is expected to be passed this coming week. While all of the benefits of those three events have lifted stocks up to record highs this year, the negative effects have toppled markets in recent weeks, especially in technology stocks that have largely benefitted from pandemic restrictions and low interest rates. The jobs report for February was released on Friday and saved stocks for the week and turned an ugly week into a positive one, with the labor market producing 379,000 jobs for the month and beating the 200,000 figure that was expected. (Barron’s)
Stimulus Bill Passes House & Senate
The $1.9 trillion stimulus bill has now passed the House and Senate as of this past Saturday and is now in a reconciliation stage before it will be sent to the president’s desk for signature, which is expected later in the week. The massive bill, almost equal to the CARES Act passed last March, includes direct payments to individuals and extends enhanced unemployment assistance, but does not include the increase of the minimum wage to $15 that was passed in the House. This is surely one of the last, if not the final, pieces of direct stimulus as a result of the pandemic, assuming the current path of reopening stays on course. Just last week, President Biden announced that there will be enough vaccines available that any adult will be able to receive one by Late May, spurring confidence that a realistic return to normal may begin in the summer. (Barron’s)
According to a recent Duetsche Bank survey, what percentage of their stimulus payments do young millennials, age 24 to 35, plan on using to invest in stocks? (Scroll Down for Answer)
Have a Great Week!
3. Young millennials plan on average using 50% of their stimulus payment to invest in stocks, according to a recent Deutsche Bank survey. (Barron’s).