Market Update - December 6, 2020
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.
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