Percentage who have gotten, or definitely will get, a vaccine

Happy Valentine's Day and Happy President's Day. Since the market is closed tomorrow, I'll wait until then to publish the weekly summation. But in the spirit of Valentine's Day, and since this pandemic, the quarantine, and the social distancing it has required has all put a strain on relationships (and for those who did not have a Significant Other at the start of this thing, how does one get a new relationship started under these conditions?), I thought I'd share a graphic from today's Big Picture blog site showing the percentage of Americans by state who either have or plan to get the vaccine. 

The GameStop lawsuits are missing the point

For your weekend reading, I submit from this week's Investment News still another perspective on the GameStop debacle that caused so much commotion in the markets a couple weeks ago and almost brought down the hedge funds. This article is a defense of what they did, though personally I still feel it had to be illegal. We'll see what comes from the SEC investigation.  Meanwhile, enjoy the weekend. 

S&P 500 hits record peak as stocks post weekly gain

The S&P and Nasdaq hit records again today as the optimism over stimulus and a quicker recovery continues to feed the bulls. The good news remains that it’s all just a big rotation into cyclicals speaking highly of an expectation for a brighter future. Better yet, the VIX closed below 20 for the first time in a year with a Reuters poll showing people believe the economy will be back to normal within a year. Over $23 billion has poured into stocks this week, the biggest weekly inflow in 13 years. Today’s volume came in at just under 13.3 billion. 

Nasdaq, S&P 500 gain on tech stocks, hopes for more stimulus

Down a hundred, up a hundred, that’s how the day went with the Dow. Today Joe Biden reminded the world that we still have a problem with China and, if we don’t up our game on infrastructure, we might be in for a real challenge. Thus, the case of nerves between East and West got a jolt today which accounted for much of the seesaw action. The stimulus and a $15 minimum wage are just the first steps. The good news is that unemployment applications were down and, at under 800K, way below the 6.8 million from last March. And Q4 earnings growth has been upped again, this time to +3%, and again a very stark contrast to the minus 10% predicted last month. The really good news is that as Q4 drones on, sentiment as today’s expert put it, is that “I don’t see the overall market as horribly overvalued,” as for the past month investors have been looking to Q4 to validate the high valuations.  At least one expert feels they have now been validated.  Volume was nearly 17.7 billion versus the 4-week average of nearly 16 billion. 

Wall Street rally pauses as big tech loses steam

Both the S&P and Nasdaq lost just a smidge of ground today but the Dow advanced 62 points on continued optimism of stimulus and a quicker recovery. The big positive, as was also true yesterday, is that investors are not moving to cash but rather just rotating to different sectors, sectors that will do well in a recovered economy which means hope springs eternal. As today’s expert put it, “You’re seeing a broadening of market leadership. 75% of the S&P are trading above its 200-day moving average. That’s remarkable breadth.” The big concern remains over-valuation, which is why eyes are still glued to Q4 which the markets are hoping will validate current price levels. The good news: consumer prices rose moderately but inflation remains benign and Q4 has so far exceeded expectations on volume of 18.3 billion. 

Nasdaq extends record run; oil prices rise

The S&P and Dow ended their 6-day winning streak with a day of very small losses with the Dow down a mere 10 points while investor sentiment remains focused on a strong Q4 and optimism over a quicker economic recovery. The good news, as today’s expert put it, “Investors are hard pressed to find significant negatives. You’re not seeing money going out of the market and into cash … but money coming out of one sector and being rotated into another,” reflecting faith that things are on the right track. The hopes of a quicker recovery has boosted oil prices on the expectation that as people return to work the demand for fuel will rise.  No volume data was report but per the CBOE, 16 billion shares changed hands. 

Wall Street sets record closing highs on stimulus hopes, vaccine deployment

Optimism over increased stimulus and a speedier vaccine rollout took the indexes to new highs, the Dow up 237 points and up for a 6^th straight session. As today’s expert summarized the optimism, “[Investors are thinking] maybe they can go to a baseball game this summer.”  But the concerns over significant overvaluation continues, concerns that have haunted investors for most of the past year.  The best news is Yellen’s prediction that we could see full employment again as early as next year. Q4 is now past the half mark with 83% of 294 companies beating estimates. Volume is right in line with the 4-week average at 15.3 billion.