Premarket: Apple is red

From the wsj's "U.S. Stock Futures Slide as Covid-19 Cases Rise," posted early Monday:

Stocks have rallied in recent weeks to record highs on brightening economic prospects due to the development of Covid-19 vaccines. But rising coronavirus infection levels and their potential impact on the rebound is also weighing on sentiment. New restrictions intended to slow the spread of the virus in California went into effect Sunday night, after the number of people hospitalized in the U.S. because of Covid-19 hit another record.

“For U.S. growth, the vaccine is not going to have a substantial impact on this third wave,” said James McCormick, a strategist at NatWest Markets. “The U.S. growth picture in the very near term is clearly tilting lower.”

Data released Friday showed that U.S. job growth slowed sharply in November, suggesting the labor-market recovery is losing steam amid the surge in coronavirus cases and new business restrictions.

The rising case levels and faltering economic recovery could encourage Congress to pass a new fiscal-stimulus package, investors said. An expanding, bipartisan group of lawmakers has been trying to settle on a coronavirus-relief agreement to help businesses and families through March. Lawmakers and aides said Sunday that they hoped to have legislative text ready early this week.

My take: Deja vu all over again.

2 Comments

  1. Gregg Thurman said:
    And now it’s green, or maybe flat in anticipation of this week’s announcement.

    0
    December 7, 2020

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