The Latest On Stimulus Negotiations and Initial Vaccinations
Lawmakers are still attempting to agree on a fiscal stimulus package, but House Speaker Nancy Pelosi invited congressional leaders, including Senate Majority Mitch McConnell, to consider government funding and coronavirus relief options, after a bipartisan group of lawmakers sent a proposal for another round of economic relief on Monday evening.
The coronavirus pandemic continues to ravage the nation and the globe, but a stimulus deal could arrive as investors and Americans at large grapple with current anemic growth and jobs data.
The first round of vaccine shots developed by Pfizer and BioNTech were given in the U.S. on Monday, just as the country crested over 300,000 deaths from coronavirus, according to data from Johns Hopkins University. Hospitals across the nation are also grappling with a shortage of ICU beds.
This Remains a Bull Market for Stock-Pickers There is some rotation in and out of hot sectors but there continues to be plenty of very positive action. Stocks quotes in this article: AAPL
The market action Tuesday was largely the inverse of what we saw on Monday. Rather than a steady drip of selling and a close at the lows, stocks steadily improved all day and closed at the highs. Breadth was impressive with 5,700 gainers to 1,700 decliners and the number of new 12-month highs improved to around 575 by the close.
The FATMAAN names acted well and the mighty Apple (AAPL) showed some signs of regaining its leadership role. The biggest negative was poor action in the highly speculative SPAC sectors. Traders were grumbling about the price action and many of them dumped shares out of disgust. However, I think it was just a much-needed reset that will set up the good ones for some sizable rebounds.
The U.S. central bank said it will buy at least $120 billion of bonds each month until substantial further progress has been made toward the Committee s maximum employment and price stability goals. The Fed declined to make any changes to the duration of its bond-buying program, but Chairman Jerome Powell said the central bank would increase its asset purchases if the economic recovery slows. The FOMC seems very committed to its current plan of action, and there is no sign that the stronger than expected economic rebound or promise of an effective vaccine roll-out has done anything to tempt them to taper their enthusiasm, said Michael Shaoul, chairman and CEO of Marketfield Asset Management, in a note.