I heart February - The turn of the calendar continues to benefit the US as stocks once again are heading towards new ATHs. With the Fed holding steady with their mandate, stimulus is the next obstacle Washington is tackling, and with VP Harris casting the tie breaking vote this morning, the Democrats have shown they are willing to move forward with their stim plan without their Republican colleagues. Showing the economic difficulty is still ongoing, Nonfarm payrolls only rose 49k (and December was revised lower). While it missed the 105k estimated, those estimates had risen from 50k on Monday. Seems January was a difficult month to predict. But it’s about stimulus now, and only Tech/ Semis (XLK -18bps/ SMH -78bps) are underperforming. Metals (XME +2.3%) are following metal commodities higher, as is the Energy sector (XOP +1%). Oil (CL1 +1%) seems ready touch $60, a level last seen in January 2020. Lastly, earnings are a little more than half way done, and they are +6.8% y/y (for the S&P 500). The message still is supportive for the markets.
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