“U.S stock market set to trade higher despite the increase in new coronavirus cases.”
Worry over the coronavirus spread could not limit the upside of the stock market. Traders and investors are betting that the pandemy will end as effective vaccine has been found. Restriction are introduced across the U.S states and the effects will be seen in the coming economic data.
Meanwhile, traders could continue hold long positions in equity and switch out of technology stock as rotation happening.
The Department of Labor reported that the four-week moving average of initial claims, which eliminates volatility in the numbers, decreased 13,750 to 742,000. Continuing claims (persons who are already receiving unemployment benefits) dropped 429,000 to 6.37 million, marking a fresh pandemic-era low.
National Association of Realtors reported that existing home sales in October increased 4.3% to 6.85 million units, surpassing the consensus estimate of 6.45 million units. September’s data was revised upward from 6.54 million units to 6.57 million units. Year over year, existing home sales jumped 26.6% in October.
What to Look For
Much is hinged on Stimulus Package news, new COVID vaccines, as well as prevention and control responses and implementation.
“Pfizer (PFE) and BioNTech (BNTX) said they plan to file for an emergency use authorization with the U.S. Food and Drug Administration on Friday, which would allow them to have their vaccine used in the U.S. starting in December.”
For the foreseeable future, markets and the economy will be dependent on how the world leaders adapt to new surges in COVID cases. As well as balancing these health and safety needs with attending to a robust economy. We discussed this in a previous email from 2 weeks ago.
As mentioned in our October 6th article, we correctly predicted that Trump would resist transfer of power if he lost the election. The current lack of co-operation is only delaying new federal initiatives to beat COVID and stabilize the economy.
“The General Services Administration has informed President-elect Joe Biden that the Trump administration is ready to begin the formal transition process, according to a letter from Administrator Emily Murphy sent Monday afternoon and obtained by CNN.
The letter is the first step the administration has taken to acknowledge President Donald Trump’s defeat, more than two weeks after Biden was declared the winner in the election.”
The bottom line is that we can expect to see the market continue to fluctuate up and down. As new vaccines are introduced, the prime, federal funds and mortgage rate are lowered or raised, and significant COVID socio-economic developments occur, the market will inevitably react.
2 investment types that can be less impervious to the fluctuations of these trying times
The market, it must be remembered, is not the economy. Whether the market stays bullish or retreats, wealthy and successful investors like you are always going to look – and find – the right place to place your capital.
Feel free to book a meeting to discuss the full range of options with BAI Capital. Together, we find risk-averse ways to expand your portfolio.