Here are the top news, trends, and analysis investors need to get their trading day started:
1. Wall Street plans to extend the rally on Tuesday
U.S. stock futures were higher after Tuesday’s rally as investors became more optimistic that Washington could reach an agreement on another coronavirus economic relief package. However, a weaker than expected retail sales report weighed on earnings.
The Dow Jones Industrial Average rose 337 points on Tuesday, closing less than 20 points from its record high on December 4th. While the profit of the S&P 500 was also just before the record high from the beginning of December, the advance of the Nasdaq on Tuesday was enough for a new record high.
All three stock benchmarks were nearing their all-time highs from earlier this month in hopes that the nationwide rollout of the Pfizer and BioNTech Covid-19 vaccine and the possibility of FDA emergency approval to use the Moderna vaccine over the course of the year This week could begin flood in the fight against the coronavirus. As of Tuesday, 112,816 people were hospitalized with Covid in the US, as the seven-day average of recent deaths in the US hit an all-time high of 2,491.
Also on Wednesday morning, Bitcoin surpassed the $ 20,000 level for the first time in history when crypto enthusiasts pointed to increased institutional investor demand for the red-hot digital currency.
2. Investors watch falling retail sales and the Fed’s 2020 final
People look at the holiday decorations in the shop windows of the country store on Main Street in Stockbridge, Massachusetts on December 13, 2020.
Joseph Precious | AFP | Getty Images
The government released its latest reading on U.S. consumer spending on Wednesday amid pandemic-fueled high unemployment and stricter measures to contain Covid that are returning in many states. Retail sales in November were down 1.1%, more than three times the expected decline. Consumer spending accounts for more than two thirds of the country’s economic activity.
The retail data comes from the Federal Reserve hours before the end of the last two-day session of the year. Its policy statement will be released at 2 p.m. (CET), followed by a press conference by Fed Chairman Jerome Powell. Interest rates are not expected to change near zero percent to support the economy during the coronavirus crisis, but central bankers could tweak their bond purchase program.
3. McConnell Says Legislators Won’t Leave “Until We Get A Covid Package”.
US Senate Majority Leader Mitch McConnell (R-KY) speaks at a press conference at the US Capitol in Washington, USA on December 15, 2020.
Nicholas Comb | Reuters
The four leaders on Capitol Hill appear to be making headway toward government funding agreements and another round of economic stimulus for the coronavirus. House Speaker Nancy Pelosi, D-Calif., Senate Majority Leader Mitch McConnell, R-Ky., Senate Minority Leader Chuck Schumer, DN.Y., and House Minority Leader Kevin McCarthy, R- Calif., Met on Tuesday with time running out before year end. McConnell told reporters that Congress won’t go on vacation “until we get a Covid package, no matter how long it takes.” A partial shutdown of the federal government could take place this weekend if no agreement is reached on state funding.
4. The Senate Majority Leader warns the GOP not to object to Biden’s victory
U.S. President-elect Joe Biden speaks during a rally in support of Democratic Senate candidates in Atlanta, Georgia, December 15, 2020.
Jim Watson | AFP | Getty Images
In a speech in the Senate Tuesday, McConnell specifically recognized Joe Biden as President-elect for the first time after weeks of Republican delays in recognizing the 2020 election result. The Senate majority leader later warned Republicans not to object to the election college results when Congress confirmed Biden’s win on Jan. 6, multiple sources told NBC News. Still, some GOP members, including Sens. Kelly Loeffler and David Perdue of Georgia, rejected Biden’s victory. Both incumbents face runoff elections on January 5th that will determine whether McConnell and the GOP will retain control of the Senate.
5. New York City could see the biggest snow storm in years
A large blizzard is developing and could be the worst to hit the New York area in years. The winter explosion is expected on Wednesday and Thursday in the northeast and mid-Atlantic. The weather channel predicts a foot of snow and strong winds from western Maryland to southern New England. In some areas there can be a winter mix of sleet and freezing rain.
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