“The rotation that began in September is under way now will continue well into Y 2021. So, focus on value, small-caps, and emerging markets”— Paul Ebeling
US stocks marked record highs Friday, the major benchmark indices reached closing record highs, with the S&P 500’s gainers led by financials and energy stocks on cyclical rotation.
Economic data was the focus Friday, with the Labor Department’s November NFPs reflecting the slowest pace of job growth since April’s record virus-induced drop in employment.
The Non-farm payrolls grew by 245,000, less than the estimate, other recent jobs data has surprised to the Northside: Thursday’s weekly new jobless claims report showed the 1st drop in new unemployment claims in 3 qks.
As traders, investors and economists look ahead to a brighter Y 2021, strategists are not ID’ing which stocks and sectors will drive ahead in the post-virus economy.
We here at HeffX-LTN believe the trends developed in the September/ November and early December frame with cyclical and value issues that were hard hit last February/March by the epidemic outperforming will extend into and throughout Y 2021.
As we move into Y 2021, there will be broad inclusive economic growth enhanced by fiscal stimulus.
I believe we will get a package soon, and the Fed will continue its course. We have pent-up demand and a market that will move further North, but with different leadership that reflects more broad domestic economy growth with the financials in the lead followed by materials and energy.
This is a clear signal the the market believes that President Trump will win a 2nd term when the dust settles.
The rotation that began in September is under way now will continue well into Y 2021. So. focus on value, small-caps, and emerging markets.
Friday, the benchmark US stock market indexes finished at: DJIA +248.74 at 30218.20, NAS Comp +87.05 at 12464.15, S&P 500 +32.40 at 3699.13
Volume: Trade on the NYSE came in at 975-M/shares exchanged
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Very Bullish at the wk ended 4 December 2020.
- NAS Comp +38.9% YTD
- S&P 500 +14.5% YTD
- Russell 2000 +13.4% YTD
- DJIA +5.9% YTD
Looking Ahead: Investors will receive the Consumer Credit report for October Monday.
Have a healthy weekend, Keep the Faith!