Apple Leads Monday Stock Charge to Record Highs In Final Week of 2020

After a flat Christmas week, stocks popped this morning after President Trump reversed his position on the COVID-19 relief bill and the federal spending omnibus and signed both into law.

This second round of stimulus is smaller than the package passed earlier in the year. Individuals will get just $600 in stimulus checks, half the amount passed in March. But investors will keep a positive outlook on stocks and the economy so long as the money printer goes ‘brrrrrr:”

“All the bluster neither significantly changed to outlook for stocks, as markets still expected (and ultimately received) stimulus of a minimum of $900 billion to pass,” wrote Tom Essaye, founder of The Sevens Report.

“The five pillars of the rally (Federal stimulus, FOMC stimulus, vaccine rollout, divided government and no double dip-recession) re-main largely in place, and until that changes, the medium and longer-term outlook for stocks will be positive,” Essaye added.

The 10-year U.S. Treasury yield increased to 0.95% in sign that investors are willing to move into riskier assets like stocks.

Apple (AAPL) has been the big winner of the day, seeing it’s shares rise over 3%. Goldmans Sachs (GS) and Disney (DIS) also did well, both gaining over 2% so far. Speaking of Goldman, its chief economist Jan Hatzius raised his 2021 first-quarter GDP estimate from 3% to 5% after President Trump signed the two spending bills.

The markets love stimulus. So long as the money spigot stays open, investors think stocks will keep climbing.

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