D&D Note (12.7.2020) ~ All Eyes Back On Stimulus After Last Weeks Jobs Report ~
Stocks traded mixed today on light volume. After last weeks bad jobs report investors are now expecting to see some sort of stimulus being passed this week. There is a $908 billion Covid relief package on the table potentially being added to a short term government spending bill.
The NASDAQ got bid up today as defensive risk off and Gold also caught a bid.
The VIX remains above a 20 handle so there is still uncertainty in the market.
Overall markets are still near their all time highs. Besides Covid & Stimulus the biggest risk to the market is the January 5th Georgia Senate runoff election.
As the 10YR yield approaches 1% many investors are looking to see the FED possibly impose yield curve controls on the long end. The debate is where in the range between 1% to 1.5% would the FED begin stepping in when they meet December 16th.
California began its stay-at-home 2.0 today and will run into the end of the year. NYC is warning that shutdowns could be coming very soon and first step is likely closing down indoor dining.
Virgin Galactic was a big gainer today rising 18.30% in cash trading.
AirBnB and Doordash both are planning to IPO this week.
The FDA could authorize Pfizer’s Covid vaccine by the end of this week.
Stocks came off the lows of the day to close.
DOW down -0.49%
S&P 500 down -0.19% (3691.96)
NASDAQ up 0.45%
VIX up 2.45% to 21.30
Oil down -1.32% to $45.65 a barrel.
Gold up 1.42% to $1866.20 an ounce.
Over the past seven days the U.S. has reported record-high average of cases with more than 196,200 which is up over 20% compared to a week ago.
The rise in cases is causing an approaching record-high level in the 7-day average of daily Covid-19 deaths.
Global Virus cases: 67.44 million+
Global Virus deaths: 1.54 million+
U.S. Virus cases: 14.88 million+
U.S. Virus deaths: 283,211+
~ Dave James / Principal Trader and Market Strategist