CW8888: No more fear in the market as greed has taken over and overwhelm any fear left in the market??? Hoot ah!
Brother STI. You no follow ah?
Stocks hit record levels on Friday as traders shook off a disappointing print on job creation in November.
Each of the three major indices reached closing record highs, with the S&P 500’s gains led by energy and financials stocks as a cyclical rotation remained intact. A day earlier, the blue-chip index was pressured after the Wall Street Journal reported that Pfizer (PFE) was contending with supply-chain issues that would impact this year’s deliveries of its COVID-19 vaccine. The drug-maker, along with its German partner BioNTech (BNTX), plans to ship 50 million vaccines by year-end, as opposed to the 100 million it previously expected. It still anticipates handing over more than 1 billion doses in 2021, however, and Bloomberg reported on Friday that the company was closing in on hitting its vaccine target for this year.
Economic data took center stage for traders on Friday, with the U.S. Labor Department’s November jobs reflecting the slowest pace of job growth since April’s record virus-induced drop in employment. Non-farm payrolls grew by just 245,000, sharply missing the 460,000 expected. This deceleration came as COVID-19 cases spiked to record levels last month and new business restrictions came into play. Still, other recent jobs data has surprised to the upside: Thursday’s weekly new jobless claims report showed the first drop in new unemployment claims in three weeks.
As traders and economists look ahead to a brighter 2021, strategists have begun to consider which stocks and sectors might pull ahead in a post-virus economy. Many believe the trends seen in November and early December – with cyclical and value names that had been hardest hit earlier on by the pandemic outperforming – will extend into next year.
“As you move into 2021, there will be broader economic growth, it will be more inclusive, you will see continued fiscal stimulus – I do believe we will get a package. You’ll see the Fed continue. You have pent-up demand,” Brent Schutte, Northwestern Mutual chief investment strategist, told Yahoo Finance on Thursday. “In 2021, you have a market that will move higher, but with different leadership that reflects more broad economy growth. Think the rotation that we’ve been talking about … it’s under way right now and it will continue into 2021. Think value, think small-cap, think emerging markets.”