A New Low? | February 12, 2021

AUTHOR: Jason J. Roque, CFP®, APMA® TITLE:       Investment Adviser Rep – CCO TAGS:   S&P500, energy, economic data

Markets rose again last week. Is this a sustainable move north or should we expect a new low?


The S&P 500 added .75% to open the week. A light day for economic data allowed headlines to dominate. Vaccine headlines and stimulus news led to gains in value-oriented sectors.


Steam was lost on Tuesday as markets ended the day mixed. Job Openings increased to 6.646M in December. That was not enough to lift markets as a breather in the rally occurred. The positive data does not support the case for excessive stimulus, this could have played into Tuesday’s performance.


The lack of excitement was carried over from Tuesday into Wednesday. Early gains turned into losses and the S&P 500 ended the day mildly lower. Crude oil inventories fell more than expected and Consumer Price Index (CPI) data came in softer than expected. Energy and communication shares out performed on the day.


Market activity started strong and faded quickly again. As the day progressed, markets did come back enough for the S&P 500 to post a gain. This came after back-to-back losses. Initial jobless claims reported, and they fell to 793K, one of the lowest levels since the beginning of the pandemic.


The weekend started off with a bang as markets closed out the week in the green, rising .48%. Some of the moment was on poor sentiment. That, in conjunction with jobless data from Thursday increased the likelihood of a stimulus package being completed.


The markets gained for the week as the S&P 500 rose 1.24%. This was not quite the gain the prior week experienced. A gain following that epic rise is, however, a win for sustainability of growth.

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