Weekly Market Recap
Since it’s 2020 and the year has been one debacle after another, it’s no surprise that we have ourselves a contested Presidential election. Here’s what we know so far and what we think we can expect going forward.
It will probably be some time before we know the final outcome of the Presidential election. It could be days or weeks to come. What we do know with some certainty is that Congress will remain as is – Dems control the House and the GOP controls the Senate. What that ultimate makeup of each House will be is still in the air, but the controlling parties we do know. The market is interpreting this to mean legislative gridlock.
The Fed verified, once again, that the Funds Rate will stay low until 2023. The Central Bank declared that the key rate level will remain at 0-0.25% for the foreseeable future. With 89% of S&P 500 companies having reported 3rd quarter earnings so far, the number of companies beating estimates (86%) and the magnitude of the earnings beat means that the 3rd quarter should be a record-breaking quarter for earnings. The job market continues to improve and the economic picture is still on solid footing. Investors should stick to their current asset allocation strategy for the time being.
Just this morning, Pfizer and BioNTech announced that their COVID vaccine showed 90% effectiveness in preventing patients from contracting the virus in the latest results of their large-scale trial study. They said they will seek US emergency use of the vaccine later this month. Equity markets have exploded higher on the news.