The market week ahead | Adrenaline-fueled rush for some stocks | Under-the-radar breakout plays
| EDITOR'S NOTE
A lot of the good news that lies ahead may already be accounted for in the market as Wall Street logs its first weekly loss of 2021.
The S&P 500 and Nasdaq Composite each fell more than 1% for the week. The Dow Jones Industrial Average lost 0.9% over that time period. It was the first weekly decline for the Dow in five weeks. The Nasdaq also snapped a four-week winning streak.
Those weekly losses came as traders awaited, and ultimately received, the details of President-elect Joe Biden's $1.9 trillion Covid stimulus proposal.
The plan would increase the additional federal unemployment benefits to $400 per week and extend them through September and provide direct payments of $1,400 to many Americans. It also calls for $350 billion in aid to state and local governments, $70 billion for Covid testing and vaccination programs, and raising the federal minimum wage to $15 per hour.
"There was a fair amount of transparency as this deal came to fruition," said Keith Buchanan, portfolio manager at GLOBALT. This made it easier for investors to price in the proposal's potential impact on risk assets ahead of time, he said.
In the week ahead, investors will focus on corporate earnings from Bank of America, Goldman Sachs, United Airlines and Netflix. Wall Street will also keep its eyes on Washington as Biden gets set for his presidential inauguration on Wednesday.
Despite this week's losses, Biden will head into the White House with the biggest market tailwind between an election and an inauguration since at least 1952, writes CNBC's Patti Domm. The S&P 500 has rallied about 13% since Nov. 3.
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MICHAEL SANTOLI'S MARKET COLUMN
THE WEEK AHEAD
ACTIVIST SPOTLIGHT
YOUR WEEKEND BRIEFING
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