Good news Wednesday and stocks come through. The S&P and the NASDAQ hit new all time highs and the DOW was up but not a new high. Precious metals recovered from a recent pull back. Gold is up $50 in 2 days and silver is up 8% over the same 2 days.
More retail sales news, some good some not. Another company announces a move from California to Texas.
The 10 year Treasury creeps higher as China sell Treasury bonds. So who is buying all the debt the U.S. Government is selling?
Quote from the attached article: "The market has been fueled higher in recent weeks by optimism that Covid-19 vaccines will help accelerate the economic rebound. That has fueled a rally in stocks that are sensitive to economic growth, including energy and banks."

Tuesday, stocks were down yesterday. It's too early to call a peak in economic activity but the reports coming out are showing a stall in activity.
Is it political or a normal business cycle?
Joe Biden is announcing his appointments should be become President. The potential appointments are not unknown they all have long public records. Investors need to study their records and adjust their investments accordingly. See the attached article. Quote from the article: ".....drawing on veterans of the Obama administration and progressive think tanks. Their past views on inequality, labor economics, education and budget deficits offer a guide to how they could shape the administration’s policies."
A total of 12 articles of impeachment have officially been filed against Ohio Gov. Mike DeWine over abuse of power during the Chinese coronavirus pandemic. For me the question is not if the action he took helped control the virus but was his action constitutional.

Monday, black Friday was a bust for in person shopping. Online shopping was up but it's too early to know if it will make up for the personal shopping drop. What does this mean for brick and mortar retailers?? Quote from the article: "Roughly half as many people visited stores on Black Friday as they did last year, according to research firms that track foot traffic. Meanwhile, online spending jumped 22% from a year ago, making it the second-best online shopping day ever measured by Adobe Analytics."
New home sales dropped month over month but still up year over year,
New jobless claims rose for the second week in row. Two weeks doesn't make a trend but it's worth watching.

Good news Wednesday and the markets come through. The Dow closed above 30,000 up 60% since March.
The housing market news was good but consumer confidence not so much.
Elon Musk is now the second richest man in the world. His net worth has increased $100 billion (that's BILLION) this year.
Yesterday I posted an article from Zerohedge titled "Investors Go All-in Without a Safety Net".
A quote from the article: "The markets are indeed currently exceedingly exuberant on many fronts. With margin debt back near peaks, stock prices at all-time highs, and “junk bond yields” near record lows, the bullish media continues to suggest there is no reason for concern.
Of course, such should not be a surprise. At market peaks – “everyone’s in the pool.”

Tuesday, almost the end of a short week. The Dow was up and is closing in on 30,000.
Bitcoin is just short of 19,000.
Biden is in the process of announcing potential members of his administration. I you liked the obama years you'll be seeing a lot of familiar names.
Facebook messenger can hear you.
The attached article is further evidence of how the pandemic is changing how and where we live.
A quote fro the article: “I don’t believe we should have an environment where management is not involved with those determinations, because what you could get into here is a situation where employees then become the decision-maker in working literally from anywhere, and you would have a hard time organizing and holding together a culture if that was the case.” And just what would that culture be??

Monday, the beginning of a short week that is packed with reports housing, unemployment, consumer attitudes, durable goods orders and more.
Stocks were down Friday but futures are looking higher this morning.
Another vaccine making a total of 3 now with 90% + effective rate.
Corporations are starting to pay dividends again. After tightening the purse strings during the pandemic they are feeling better about restarting paying dividends.
The attached article outlines the changes in the automotive industry. The model is more like the european model where it is common to order a car and wait for delivery. This will be a test of the instant gratification mentality of the American consumer. Quote from the article: "For months, dealer stocks have been running about 25% thinner than normal, a hangover effect from two months of pandemic-related factory closures last spring. The shortfall is requiring many buyers to order their cars and wait a few weeks, running counter to the American car shopper’s desire for instant gratification, and dealers’ impulse to send the customer home in a new car that day."

TGIF, a late day rally saved the Dow from another loss yesterday.
The only bright spot in the news yesterday was the existing home sales report. Existing home sales were the highest in 14 years. Selling prices jumped 15% year over year.
Jobless claims rose and the Philly and Kansas City manufacturing indices dropped.
Online airline bookings dropped again.
This year the online shopping season will be the online scam season.

Thursday, stocks were down again yesterday. I guess the thrill of a vaccine has worn off.
Mortgage applications rose again and housing starts were double the expected increase.
Bitcoin is at the highest since 2017.
The attached article documents how the economy and employment are changing as a result of the pandemic. A lot of people are making more money, the reason is telling.
Quote from the Wall Street Journal article:
"The coronavirus destroyed jobs. It also created entrepreneurs.
To adapt to the pandemic and the job loss it unleashed, more Americans are becoming their own bosses, setting up tiny businesses to work as traveling hair stylists, in-home personal trainers, boutique mask designers and chefs. A man in Maryland started a mobile car-washing business.
Many new entrepreneurs previously worked at salons, gyms and restaurants, in the kind of face-to-face jobs erased when state orders closed swaths of the economy in the spring. The economy has since mounted a split recovery, with some Americans thriving while many others continue to struggle. A cohort of the laid-off, stuck on the descending arm of that recovery, are using their ingenuity to get off it."

Good news Wednesday but stocks take a breather from the recent rally. Other economic news was good but shows signs of slowing.
Retail sales were up for the 6th straight month, industrial production was higher (see attached article) and the housing market index is at the highest level ever.
Soybeans are near a 4 year high and WalMart says the supply chain isn't keeping up with demand. If we were not in the middle of a political mess where would the economy be?
If Biden becomes President what should we expect as big changes?
Quote from the attached article: "Economists said they expect to see production continue to make up lost ground in the coming months since demand for goods has held up better than demand for services."

Tuesday, Dow and S&P 500 hit new all time highs. Who's worried about the virus, politics, the economy, stimulus running out at the end of December or anything else? Investors believe the Federal Reserve has this and they won't let anything bad happen. Let's hope they are correct.
Empire Manufacturing index reported yesterday and it slowed considerably.
The attached article indicates retail property owners are learning to adapt. Quote from the article: "Mall operators, faced with a sharp downturn in foot traffic, are looking into the viability of converting empty commercial space into mini-fulfillment centers for their remaining retail tenants, technology vendors and analysts say."
If politics were not involved I wonder just how fast the economy could recover.