Published Every MondaySince 2007| Volume 743| February 20, 2021
So far YTD these many weeks were up (Bull), down (Bear), or draw (Bull/Bear) … Bulls (Markets UP) = 04… Bears (DOWN) = 04… and Draw = 0
The DOW slips 449 points for the week
The DOW was down -449 points or -1.4%, S&P500 -74 points or -1.9%, and the NASDAQ -522 points or -2.4% for the week ending Feb 26th.
Markets are now off their record peaks. Many experts believe that it is a market correction as recently stock prices have increased significantly, especially the technology stocks.
Many believe that as bond interest rates rise risk averse investors tend to move money from stocks (riskier investments) to bonds which are consider less riskier. Federal Chair Powell has iterated that Federal Reserve does not see the economic signs that will require it to raise interests rates anytime in the near future which is one of the key force behind increasing rates. However, the short term Treasury bonds and the 10-year Treasury bonds rose due to investors interest in protecting their investments from the stock market gyrations.
Oil rose $2.7 or +4.5% to $61.66 per barrel. Oil prices continue to rise due to expectation that economic growth and recent severe cold weather in US will significantly increase the oil and gas demand.
COVID STIMULUS BILL – Over the weekend House voted on party lines to pass $1.9 trillion pandemic aid package which includes $1400 stimulus payments, enhanced unemployment aid, small business assistance, money for childcare, aid for states and school, increased support for vaccine, and long awaited minimum wage increase to $15. Now this bill goes to Senate where some of these provision will be debated and amended, including the minimum wage to $15.
US Covid-19 deaths have crossed unfortunate mark of 523K (+15K from last week). US Covid deaths > than US lives lost in WW I, II, and Vietnam wars Combined!!
Global Covid cases ~114 million (+3M); Global deaths > 2.5 million;
US Covid cases = ~29 million (+1M and ~26% of world); US deaths ~ 523K (or ~21% of the world)
The richest nation on earth US has about 4.3% of the world population but it has lost 20% of the lives lost worldwide! Source: www.worldometers.info
In YTD 2020 Dow is up +1.1%, S&P500 is +1.5% and the NASDAQ is +2.4%
In 2020 Dow was up +7.2%, S&P500 is UP+16.3% and the NASDAQ is UP +43.6%
In 2019 DOW was up +22.3%, S&P500 up +28.9% and NASDAQ up +35.2%
In 2018 the DOW was down -6.7%, S&P500 down -7.0% and NASDAQ down -4.6%.
In 2017 the DOW was up 25.1%, S&P500 up 19.4% and NASDAQ up 28.2%