Warmest Wishes from our family to yours
Hello Eagle Wealth Community,
Last week we thought about what this season means to us and encouraged you to do the same. These customs let us hold on to the best parts of the past and practicing them now helps us grow together. As promised, we have a few more staff holiday traditions and photos (warning cute kid photos ahead).
“Church with my family on Christmas Eve. And visiting Santa too, of course. We’ve gone every year and always enjoy looking at photos from the past.” - Chad
“Seeing just how many Christmas lights I can hang up, all while Chad rolls his eyes at me. I dream of a house decorated like Clark Griswold’s in Christmas Vacation! Chad would be mortified but the kids and I would love it!” - Cami
"My dad makes us all answer (probably made up) riddles before we open each gift - it takes us all morning. And every December, my mom and I make homemade Almond Roca and fudge and ship it to friends & family." - Emily
"My mom and I walk the beach together every Christmas morning" - Brody
All this reminiscing made us realize that perhaps it’s time to start a few brand-new traditions. Maybe instead we plan our own great British cookie bake-off, take goofy family photos, or practice our Zoom caroling skills. Even better, what a perfect opportunity to do something special for the community? Check out our Stepping Up and Giving Back guide for some ideas. All this time at home has certainly made this holiday season unique and we hope one day we’ll look back and cherish these memories all the same.
Sending the warmest wishes to you and your loved ones from the entire Eagle Wealth Management family. Thank you for sharing your 2020 with us.
The Week on Wall Street
Stocks climbed higher amid the COVID-19 vaccine rollout and an improving outlook for a fiscal stimulus bill.
The Dow Jones Industrial Average, which has lagged all year, gained 0.44%. The Standard & Poor’s 500 picked up 1.25% while the Nasdaq Composite index surged 3.05%. The MSCI EAFE index, which tracks developed overseas stock markets, rose 2.44%.[i],[ii],[iii]
Stocks Climb Higher
In a week that celebrated the national rollout of a COVID-19 vaccine, market enthusiasm was tempered by worries of infection caseload and fresh economic lockdowns.
Investors turned their focus to the fiscal stimulus negotiations in Washington, D.C., with the hope that a relief bill may be the bridge that gets the economy over its near-term troubles until vaccine distribution grows more widespread.
These negotiations were not smooth sailing. When a compromise bill appeared to gather support, markets quickly moved higher, with the Dow Jones Industrial Average, S&P 500, and NASDAQ Composite all setting new record high closes on Thursday.[iv]
Stocks slipped in the final day of trading as stimulus hopes wavered.
Fed Outlook on Economy Improves
The Federal Reserve on Wednesday concluded its last meeting of the Federal Open Market Committee for 2020. Fed officials provided more detail for its monthly bond purchase program and reiterated their commitment to a monthly purchase of $120 billion of Treasury and mortgage-back securities until its inflation and employment goals are met.[v]
The Federal Reserve also raised its outlook on the U.S. economy. It revised its September forecast of a 3.7% decline in GDP in 2020 to a 2.4% decline, and increased its 2021 GDP growth forecast from 4.0% to 4.2%. It also expects unemployment at 2020 year-end would fall to 6.7%, substantially lower than its earlier estimate of 7.6%.[vi]
Final Thoughts
Our weekly market commentary will not be published next week. We would like to take this moment to wish you and your family a safe and joyous holiday season.
THIS WEEK: KEY ECONOMIC DATA
Tuesday: Gross Domestic Product (GDP), Consumer Confidence, Existing Home Sales.
Wednesday: New Home Sales, Consumer Sentiment.
Thursday: Durable Goods Orders, Jobless Claims.
Source: Econoday, December 18, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
THIS WEEK: COMPANIES REPORTING EARNINGS
Tuesday: Cintas Corporation (CTAS), Carmax, Inc. (KMX)
Wednesday: Paychex, Inc. (PAYX)
Source: Zacks, December 18, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
