Deep Breaths… If yesterday was a “pause for breath” after a whirlwind start to the week, today feels like the first exhale of some of the vaccine cheer that’s been a boost to equities. With virus cases quickly heading in the wrong direction, shutdowns (partial at least) looking inevitable this winter, and any vaccine distribution plan lacking medical and logistical finality, there are plenty of near-term clouds obscuring investors’ view of a sunnier 2021. What began as a mild pullback this morning has become a bit more exaggerated, with Powell failing to save the day with anything new in his comments at the ECB forum, only reminding that the next months will be “challenging.” The ball is still in Congress’s court in terms of stimulus, but the only movement on that front was the White House announcing it will leave the House / Senate to get negotiations going again (apparently the WH is busy with “other things”…). All the above has led stocks to continue to fade into the afternoon. Defensive sectors Healthcare and Food Retail have been the best of the worst for most of the day but now Media has taken over the top spot as the usual winners get some of their mojo back (relatively speaking). Consequently Banks, Autos, and Energy are back in their usual place in the basement of the sector table. It was fun while it lasted? The debate continues…
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