December 10 Weekly Market Update

This week, 90-year old Margaret Keenan of the U.K. was the first individual to receive an injection of the Pfizer/BioNTech vaccine. While partially symbolic, the market zeroed in on this event as a signal that the implementation stage of the vaccine has finally arrived. There will almost certainly be news of distribution challenges and potential side effects in the days to come, but as the broader distribution of COVID-19 vaccines takes hold, the prospects for the U.S. economy and an eventual end to the pandemic appear bright.

Currently, however, the number of coronavirus cases continue to rise in the U.S. and around the world. As more state and local governments have initiated lockdowns, the subsequent toll on the job market has begun to take hold. This past Friday, the jobs report proved somewhat disappointing. Just 245,000 new jobs were created, a little over half of the 460,000 that were expected. While this swift slowdown in the labor market is naturally unwelcome, it may push Congress to act quicker on a fiscal stimulus package.

In other stimulus news, this week the Trump administration stepped in to propose a new $916 billion package in an effort to break the stand-off between congressional Democrats and Republicans. The Trump administration’s proposal includes aid for state and local governments, liability protections for businesses and schools, as well as stimulus checks to individuals. While this is the first time the administration has stepped in to exert influence since Election Day, it remains to be seen whether Congress in aggregate will buy into the plan.

Through all the worry and hand-wringing seen in 2020, the S&P 500 and Dow Jones Industrial Average set new records this week. It may feel surreal, but the market is continuing to price in the hopes that the economy will be on the mend in 2020. On the heels of this market exuberance, two significant initial public offerings (IPOs) came to market this week, namely DoorDash and Airbnb, and provided stocks with an added boost of confidence. A vote of confidence from a travel-related business, in particular, is a notably hopeful sign of what may yet to come.

Stay safe and be well.

The Dow Jones Industrial Average and S&P 500 are unmanaged indexes that cannot be directly invested into. Past performance is no guarantee of future results. Investing involves risk and the potential to lose principal.

The information provided, including references to individual companies are for general informational and educational purposes only and is not a recommendation of any kind or investment advice.

Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time and cannot be guaranteed.