The Strength of the Market is: Strong
We begin March with three main themes: Vaccines, Stimulus and Interest Rates. Over the weekend, The Center for Disease Control recommended the use of Johnson & Johnson's Covid-19 vaccine. This news created additional optimism that the economy will get back to normal sooner than later - giving stocks their best performing day since June. In addition, further stimulus measures (i.e. unemployment extension, direct payments, small business grants, etc.) were passed in the House of Representatives and, after a shocking spike in recent weeks, Interest Rates look to be stabilizing.
Economic reports from last week came back almost all positive:
•National Activity - better than expectation
•Manufacturing (Dallas) - better than expectation
•Manufacturing (Richmond) - in-line with expectation
•Housing Price Index - better than expectation
•New Home Sales - better than expectation
•Pending Home Sales - worse than expectation
•Consumer Confidence - better than expectation
•Consumer Sentiment - better than expectation
•Jobless Claims - better than expectation
•Personal Income - better than expectation
This week, economic reports like Manufacturing, Construction Spending, Vehicle Sales, Employment, Jobless Claims and Consumer Credit will be watched by investors.