Kicking off 2021 with a bang after record closes last week
All three major indexes scored monthly and weekly wins, as one of the most volatile years in the history of Wall Street came to an end last Thursday. The Dow and S&P 500 closed out the last day of 2020 scoring record highs, while the Nasdaq Composite locked in its best year since 2009. While better-than-expected jobless claims data seemed to contribute to Thursday's half-day market rise, recent COVID-19 and stimulus developments continued to keep a tight lid on significant gains for the day.
The beautiful close each index had on Thursday marks an impressive comeback from steep lows in February and March 2020, when the emergence of the COVID-19 pandemic brought the world (and the economy) to its knees. However, economic relief efforts and vaccine developments helped stocks regain their footing as the year went on. The tech and consumer discretionary sectors were by far the strongest sectors of 2020.
The Dow Jones Industrial Average (DJI - 30,606.48) added 0.7% for the day on Thursday, 1.3% for last week, 3.3% for December, and 7.2% year-over-year.
The S&P 500 Index (SPX - 3,756.07) added 0.6% for the day on Thursday, 1.5% for the week last week, 3.8% for the month of December, and ended 2020 up 16.4% year-to-date.
The Nasdaq Composite (IXIC - 12,888.28) added 0.1% on Thursday, 0.7% for the week, 5.7% in December, and a whopping 43.7% for 2020.
The Cboe Volatility Index (VIX - 22.75) lost 0.1% for the da and lost 5.7% for the week. Wall Street's "fear gauge" added 10.6% in December and 65% year-to-date.
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The first week of 2021 will be packed full of economic indicators for investors to digest and the earnings docket finally starts to fill back up after a relatively quiet period. We will kick it off with the Markit manufacturing PMI and construction spending data on tap today.
There are no earnings reports slated for release today, January 4. There were also no earnings reports released on the final day of trading in 2021. Earnings calls are scheduled to begin picking back up tomorrow.
Looking ahead to tomorrow, investors can unpack the ISM manufacturing index, as well as motor vehicle sales data. All economic dates listed here are tentative and subject to change.