Solid holiday shopping season. Holiday sales grew 3%, beating forecasts for a 2.4% increase according to MasterCard’s SpendingPulse. Online sales rose 49% year over year. These results were impressive for a recessionary period—the comparable figure dropped 3.5% in 2008—and highlight the resiliency of the US consumer and benefits of stimulus.
Daily Insights
Stocks open higher after shortened holiday week. Stocks opened higher after the long weekend and after President Trump signed the coronavirus relief bill, averting a government shutdown.
- European stocks are higher in midday trading while the United Kingdom (UK) is closed for Boxing Day
- UK and EU leaders confirm post-Brexit trade deal
- Asian markets are mostly higher with China the laggard
Economic indicators to look for in the week ahead. The economic calendar for the holiday-shortened week includes:
- Tuesday: S&P/Case-Schiller Home Price Index (Oct.)
- Wednesday: Wholesale Inventories (Nov.), Chicago Purchasing Managers’ Index (PMI, Dec.), and Pending Home Sales (Nov.)
- Thursday: Initial Unemployment Claims
January 1, 2021: LPL Financial and the stock and bond markets will be closed January 1.
Technical update. Stocks consolidated in a tight range just below all-time highs last week. The S&P 500 Index has tactical support at 3630, and will look to eclipse record highs at 3725 this week.
COVID-19 news. New COVID-19 cases over the weekend were mostly lower, although fluctuations in testing due to the holiday might skew the data.
- Near-term concern will be on monitoring for a post-holiday surge
- Total confirmed infections in the United States surpassed 19 million on Sunday (source: COVID Tracking Project)
Do you have our 2021 Market Outlook? Request it free!
Book a consultation or contact us today.
Our 2021 Market Outlook is here! What does the stock market in 2021 have in store for us? 2021 will bring advances to further limit the impact of COVID-19, and the goal remains keeping the economy as open as possible until then. Continued progress in the response to COVID-19, including further stimulus, will be key to sustaining the recovery. As the pandemic subsides, restrictions are lifted, and consumers’ daily lives return to something close to normal, the pace of the recovery should pick up speed—probably in the middle of 2021.
Prepare to power forward in 2021 with the economic insights and market guidance in LPL Research Outlook 2021: Powering Forward.
Do you have a written financial plan to grow your net worth and protect your retirement? Set up a consult to get a financial plan and advice you can understand.
IMPORTANT DISCLOSURES
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This Research material was prepared by LPL Financial, LLC.
Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).
Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.
If your representative is located at a bank or credit union, please note that the bank/credit union is not registered as a broker-dealer or investment advisor. Registered representatives of LPL may also be employees of the bank/credit union.
These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, the bank/credit union. Securities and insurance offered through LPL or its affiliates are:
- Not Insured by FDIC/NCUA or Any Other Government Agency
- Not Bank/Credit Union Guaranteed
- Not Bank/Credit Union Deposits or Obligations
- May Lose Value
For Public Use | Tracking # 1-05093139
