Here are today’s market moves:
S&P 500 up 0.47% to 3,934.83
Dow Jones up 0.088% to 31,458.40
Nasdaq up 0.50% to 14,095.47
Gold: $1,824
Bitcoin: $47,887
US10Y: 1.21%
What Happened?
The S&P 500 and the Dow Jones closed at record highs on Friday, despite finishing the week with just small gains.
Stocks remained in record territory throughout the week, boosted by anticipation of a fresh round of stimulus spending, solid corporate earnings and progress in the distribution of coronavirus vaccines.
Some investors are concerned that stocks look pricey right now. The S&P 500 traded Thursday at 22.4 times its expected earnings over the next 12 months, above a five year average of 17.9.
Three quarters of S&P 500 companies have reported Q4 earnings so far, with more than 80% surpassing estimates.
According to the CBO (Congressional Budget Office), the national debt is on pace to hit a record 107% of GDP by 2031.
The CBO also predicted a $2.3 trillion budget deficit for the 2021 fiscal year, a figure lower than last year’s $3 trillion deficit, increasing prospects for President Biden’s $1.9 trillion stimulus package.
What Else?
This Week
Monday: Earnings expected from Chegg and Hasbro.
Tuesday: Earnings expected from Cisco, Canopy Growth, DuPont, Lyft, and Twitter.
Wednesday: Earnings expected from Coca-Cola, GM, Uber, Under Armour, and Zynga; Federal Reserve Chair Jerome Powell to speak on a webinar; The U.S. consumer price index released.
Thursday: Weekly jobless claims; Earnings expected from AstraZeneca, Cloudflare, Datadog, Disney, Kellog’s, Kraft Heinz, and PepsiCo.
Friday: Earnings expected from Dominion Energy.