top of page

3 Keys to the Week - January 15, 2021

Updated: Feb 25, 2021

The markets have remained resilient over the past week, despite seemingly “unfavorable” news. A second impeachment, higher-than-anticipated unemployment numbers, and the continued fallout from last week’s protests at the Capitol could have easily derailed the markets. Instead, there was continued optimism surrounding President-elect Biden’s stimulus plan, Johnson & Johnson’s COVID vaccine edging closer to approval, and initial positive news on corporate earnings.

1.) Tension in Washington - President Trump became the first U.S. President to be impeached twice, as the House of Representatives voted in favor of impeachment on Wednesday. That said, Senate members will not be called back prior to Jan. 19th, meaning that the President should serve out the remainder of his term. The markets treated this news similarly to the Presidential Election news and the Georgia Senate runoff news. Rather than fall victim to headline risks, the stock market continued to focus on good news surrounding equity fundamentals and forthcoming stimulus.

2.) New Data – Some new information emerged this week regarding two separate topics. While corporate earnings will begin to be released over the next several weeks, many companies have issued early releases indicating an optimistic tone about their upcoming quarterly numbers. Companies that have issued positive pre-earnings comments include Union Pacific, Lululemon, and Samsung, among many others.

The other piece of data that was released indicated that first-time unemployment claims jumped by almost 200,000 from the week prior - a total of 965,000 new claims. While this number is significantly lower than mid-2020 levels, it is still the largest total since August of last year. Even this piece of information did little to rattle the markets, as this decline in economic activity is expected to be met by additional stimulus.

3.) Biden’s Stimulus Plan – President-elect Biden unveiled the details of his COVID relief plan, with the total cost of the package estimated at $1.9T. Elements of the plan include additional stimulus checks for individuals, amendments to expiring unemployment benefits, and increased spending on vaccine development and rollout. The time frame for Congress to debate and vote on the plan is unclear.



Investment advice offered through Strauss Financial Group, Inc., a Registered Investment Advisor.

These materials, opinions, analyses and information are provided for general informational purposes only based upon sources believed to be reliable and in good faith—but are not considered all-inclusive, and no representation or warranty of any kind, expressed or implied, is made concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we undertake no obligation to update such opinions, analysis or information, and no warranty or guarantee is made. The information in these materials may change at any time and without notice. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Please consult your attorney and/or accountant regarding legal and tax issues. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.

Prices, quotes, rates and yields are subject to change without notice. Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.

Investment advice offered through Strauss Financial Group, Inc., a Registered Investment Advisor.

Data sources: News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Market data: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/ Market Data (oil spot price, WTI Cushing, OK); (spot gold/silver); Oanda/FX Street (currency exchange rates).

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. Market indices listed are unmanaged and are not available for direct investment.


bottom of page