Robare and Jones Thanksgiving Market Commentary!

ROBARE AND JONES ON THE MARKETS

The U.S. economy is like a semi-truck. No one likes being stuck behind a semi at a stoplight because big trucks don’t go from zero to 60 in 2.5 seconds. Neither does the U.S. economy. From that analogy, the government has made a push to help stimulate the economy.

Congress passed the CARES Act which was badly needed for many small business being able to stay open because customer spending account for 70% of U.S. economic growth.

The Federal Reserve dramatically decreased interest rates and implemented special lending facilities aimed towards keeping many business afloat even today (no pun intended)

As we have come to know, the economy and stock market don't always have a correlation with one another. This past week we saw the S&P 500 flatline with a slight decrease due to rising COVID-19 cases and increased shut downs in major cities across the U.S. Adding to concerns, the Centers for Disease Control & Prevention issued a sharp warning against Thanksgiving travel. As travelers called off holiday trips, airlines reported an uptick in cancellations.

Still, the markets were encouraged by new vaccine data from Moderna (MRNA) reporting a 94.5% efficacy rate for its COVID-19 vaccine. This is now the 3rd company in just the last two weeks to show very promising COVID-19 vaccine data. From this the energy sector rose along with crude oil futures. Some of the biggest winners were Diamondback Energy (FANG) and Boeing (BA) jumping 19% and 7% respectively.

A number of new reports are to be released this Wednesday including the jobless claims, October durable goods, home sales, and consumer spending. Since more people will be doing Thanksgiving in smaller gathering, maybe this means turkey purchase will increase from consumer spending?

Let's take a look at the benchmarks from this past week

S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. Sources: Yahoo! Finance, MarketWatch, djindexes.com, London Bullion Market Association. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

Peanuts for Thanksgiving?

Did you know that A Charlie Brown Thanksgiving was the 1st Peanuts Special to feature an Adult Voice?

We all know the trombone “wah wah wah” sound that Charlie Brown’s teacher makes when speaking in a Peanuts special. But A Charlie Brown Thanksgiving, which was released in 1973, made history as the first Peanuts special to feature a real, live, human adult voice. But it’s not a speaking voice—it’s heard in the song “Little Birdie.”

So we hope your thanksgiving is fill with Food, Family Football, and Charlie Brown!

What's your favorite Thanksgiving movie?

CONTACT US

Sources:

https://home.treasury.gov/policy-issues/cares

https://fred.stlouisfed.org/series/DPCERE1Q156NBEA

https://www.brookings.edu/research/fed-response-to-covid19/

https://fred.stlouisfed.org/series/GDP

https://www.reuters.com/article/us-usa-economy/u-s-retail-sales-lose-speed-as-pandemic-lack-of-fiscal-stimulus-weigh-idUSKBN27X1PC

https://coronavirus.jhu.edu

https://worldpopulationreview.com/us-cities

https://www.dol.gov/ui/data.pdf

https://www.barrons.com/articles/the-treasury-is-asking-the-fed-for-its-money-back-heres-what-it-means-for-markets-51605893511 (or go to https://peakcontent.s3-us-west-2.amazonaws.com/+Peak+Commentary/11-23-20_Barrons-The_Treasury_is_Asking_the_Fed_for_Its_Money_Back-What_it_Means_for_Markets-Footnote_9.pdf)