Stock rallied last week after the strong employment numbers and Biden stimulus plans.


The Dow and S&P made new highs at the close on Friday.

The Nasdaq is now inches away from making new highs. Microsoft, Facebook and Google all made new highs.

• Dow 33802.78 +299.21 (+0.89%)
• S&P 4128.75 +31.58 (+0.77%)
• NASDAQ 13900.19 +70.88 (+0.51%)

Fed Chairman Powell was on 60 Minutes Sunday, a TV program by CBS, saying:

Jerome Powell, the chairman of the Federal Reserve, tells Scott Pelley the U.S. economy is set to make a turnaround, with increased growth that should provide more jobs.

“What we’re seeing now is really an economy that seems to be at an inflection point,” 

“And that’s because of widespread vaccination and strong fiscal support, strong monetary policy support. We feel like we’re at a place where the economy’s about to start growing much more quickly and job creation coming in much more quickly.  The principal risk to our economy right now really is that the disease would spread again. It’s going to be smart if people can continue to socially distance and wear masks.”

“The Fed will do everything we can to support the economy for as long as it takes to complete the recovery,”
(CBS News)

Earnings season is set to start this week. Goldman, JPMorgan and Citi will announce their earning this week which will set the tone for the season.

Estimates have been on the positive side and it is possible that forward-looking statement will point to further growth.

With many analyst now expecting US GDP to grow by more than 6 %, analyst will have to rethink the end of year targets for the S&P.

Many were calling for S&P to end the year at 4100. We are now way passed that so either the market corrects itself or analyst will start to move their targets higher. The latter is more likely.

Source: CBS News

This commentary was written by James Gomes
James has been in the finance industry for over 30 years and most recently worked for a large US bank for more than 20 years.

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