Hope all is well with you and your families. The S&P 500 fell for the first time in three weeks as markets worried about prospects for further economic stimulus and U.S. regulatory approval of a new coronavirus vaccine. The major indexes slipped less than 1%, retreating from record highs. This week marked the 40th anniversary of John Lennon's murder in NYC I have chosen to break down this week's market news using some of his most memorable lyrics.
Better get yourself together ... join the human race -Instant Karma!
The stimulus showdown continues in Washington as politicians are not able to put their differences aside and get aid to those in need. House and Senate leaders continue to pursue a deal on further coronavirus-related economic relief, but sticking points remained on Friday after months of negotiations and as Congress prepared to adjourn for the year. Any deal that emerges could be attached to a $1.4 trillion measure that must pass by December 18 in order to avert a government shutdown.
It's time to spread our wings and fly, don't let another day go by... It'll be just like starting over -(Just Like) Starting Over
The UK is ready to spread its wings and fly. British Prime Minister Boris Johnson said there was a “strong possibility” that his country could exit the economic union at the end of this month without a free trade agreement European stock indexes fell on Friday as a Brexit deal remained elusive in talks between the United Kingdom and the European Union. The drop came despite the European Central Bank expanding its economic stimulus program, citing risks that spiking coronavirus cases pose to the continent’s economy.
Everybody's hustlin' for a buck and a dime - Nobody Loves You (When You're Down and Out)
The recovery continues to slow. More than 850,000 Americans filed first-time unemployment claims in the latest weekly report, exceeding economists’ expectations. The total was the largest since mid-September—further evidence that the economic recovery and the labor market are under pressure as coronavirus cases spike.
This will be my final update for 2020, I will resume in the New Year. Wishing everyone a happy and healthy holiday season and a better year in 2021! I am here to help at any time. If you would like to schedule a phone/web conference appointment, I have included a link to my calendar below and you can self schedule. For those of you who prefer an in person meeting I am scheduling in person meetings, as well, please email me if you would prefer an in person appointment. Please note I will not be scheduling in person appointments the final two weeks of the year and will resume in person appointments in January.
Hope all is well with you and your family. The major U.S. stock indexes pushed their record levels higher, extending the mostly positive momentum they’ve seen since the start of November despite the rise in coronavirus cases. Weekly gains totaled 1% to 2%, slightly below the previous week’s increases. Here's this week's market news broken down by Aerosmith albums.
Get Your Wings
The S&P 500’s 10.8% gain last month was the index’s biggest in eight months and its best November result since 1928. November marked a turnaround from September and October, when the S&P 500 posted a cumulative decline of 6.6%. The market increase has us all excited. I remain cautious because in time (market) bound to lose (its) mind, live on borrowed time to quote Seasons of Wither from that album.
The pace of the U.S. labor market’s partial recovery from the spring’s COVID-19 economic shock is slowing. Employers added just 245,000 jobs in November—around half of what economists had expected, marking the fifth straight month of slowing growth. While unemployment fell to 6.7%, the number is somewhat misleading because fewer people are looking for work. Or to quote Rag Doll from that album many gave it all that got until they were put out of (the job market).
This week's rally was fueled in large part to optimism that the government was going to pump money into the economy. Spiking coronavirus cases and a somewhat weak monthly jobs report lifted hopes that Congress might overcome an impasse that’s prevented another round of coronavirus economic relief. Democratic and Republican leaders spoke about a possible deal on Thursday, and lawmakers from both parties have been voicing support for a bipartisan agreement. The spell (the market) was under the lightning and the thunder knew that (the Government) had to stop the rain to paraphrase Janie's Got A Gun from that album.
Stephen Caruso, Financial Advisor, is here to help at any time. If you would like to schedule a phone/web conference appointment, we have included a link to my calendar below and you can self schedule. For those of you who prefer an in person meeting I am scheduling in person meetings, as well, please email me if you would prefer an in person appointment. Please note I will not be scheduling in person appointments the final two weeks of the year and will resume in person appointment in January.