Three Things to Know
- Twenty-three sets of brothers died when the USS Arizona was sunk during the attack on Pearl Harbor on December 7, 1941. (Source: History.com)
- In recent years, online retailing was taking about a 1% share annually from brick-and-mortar stores. Yet in a single quarter this year it took a 4% share, or four years’ worth of market share capture in three months. (Source: Financial Advisor Magazine)
- Since bottoming on March 24 during the 2020 bear market at $23.6 trillion, total United States Exchange market capitalization stood at a record $41.6 trillion as of market close on December 4, 2020. For comparison, total U.S. GDP stood at $21.2 trillion at the end of Q3 2020. (Source: Haver, Bloomberg)
Three Things to Watch
- Economic data this week includes inflation data (CPI and PPI). Inflation remains well below the Fed’s target and comfort level with YOY CPI at 1.2%. Small business optimism is expected to dip slightly from last month (to 102.5) but remains well off the 2020 lows (90.9), and University of Michigan Consumer Sentiment is forecasted to decline slightly to 76, well below February’s 101 as the increase in COVID cases and shutdowns outweigh a strong stock market and relatively low energy prices.
- The credit markets are expected to be busy with spreads tight, benchmark rates low, and recent new issues faring well in secondary trading. As much as $20 billion in investment grade bonds are expected to be issued and the high yield and loan markets will also be busy.
- The government needs to be funded by Friday (December 11) and Congress continues to work on a major aid package to offset the economic devastation of the pandemic. Congress has not approved a major aid package since April.