January 4, 2021
The last trading week of 2020 saw major indexes hitting all-time highs, with small-cap stocks underperforming. A year with solid gains, especially for tech stocks. Will there be a Santa rally for 2021? It is too early for that, but what we should expect is a rotation of stock investing as the US stock market closed 2020 on record highs and stocks have become expensive. Although trading was light all major indices, except for Russell 2000 closed higher for the week. For 2021 I would expect value investing to gain more momentum, as growth stocks may face profit-taking. Both health care and consumer discretionary stocks were strong, while energy stocks lagged.
The economic data reported for the week was positive for the US economy. The S&P/Case-Shiller Home Price Indices released showed the health of the US housing market to be strong, with a figure of 7.9%, beating the consensus of 6.9%. The Chicago Purchasing Managers Index released, which shows the overall economic condition in the US was better than expected, with a figure of 59.5, beating the forecast of 57.
The 2020 last weekly Jobless Claims report was a strong one as both Continuing Jobless Claims and Initial Jobless Claims were better than expected. The figures for the Continuing Jobless Claims and Initial Jobless Claims reported were 5.219 M and 787 K respectively. The consensus for the Continuing Jobless Claims and Initial Jobless Claims was 5.39 M and 833 K respectively.
For the week of December 28- December 31, 2020, the major US stock market indexes closed as follows on Thursday, December 31, 2020:
• Dow Jones Industrial Average: Close 30606.48, +1.35% for the week, +7.25% Year-to-date
• S&P 500 Index: Close 3756.07, +1.43% for the week, +16.26% Year-to-date
• Nasdaq Composite: Close 12888.28 , +0.65% for the week, +41.75%, Year-to-date
• Russell 2000: Close 1974.86, -1.45% for the week, +18.36% Year-to-date
Weekly Stocks Gainers
These are the top 3 gainers, stocks with 5 days of consecutive price advances:
1. Sifco Industries (NYSEARCA:SIF), Close 8.40, 5-day change +115.38%
2. 500Wan.Com Ltd (NYSE:WBAI),Close 9.00, 5-day change +111.76%
3. Beam Global WT (NASDAQ:BEEMW), Close 66.98, 5-day change +44.98%
Weekly Stocks Losers
These are the top 3 losers, stocks with 5 days of consecutive price declines:
1. Fubotv Inc (NYSE:FUBO), Close 28.00, 5-day change -46.76%
2. Opendoor Technologies Inc WT (NASDAQ:OPENW), Close 7.72, 5-day change -35.23%
3. Wunong Net Technology Company Limited (NASDAQ:WNW), Close 37.53, 5-day change -34.13%
Economic events for the week January 4- January 8, 2021:
Important economic data for the next week will be the weekly Initial and Continuing Jobless Claims, the Markit Manufacturing PMI, the ISM Manufacturing PMI, the Trade Balance, the ISM services PMI, the Non-farm Payrolls, and the Unemployment Rate.
The article appeared first on Talkmarkets.