The market is up slightly this morning with S&P futures are 4 points higher. The trend is overall very positive and should continue. However, we do expect it to be choppy and take a few dips.
| S&P 500 | 3351 | Buy |
| Crude | 41.9 | Buy |
| Gold | 2033 | Buy |
| BTC/USD | 11892 | Buy |
| Sector | CHG% | Signal |
| CONSUMER DISCRETIONARY | −0.29% | Buy |
| CONSUMER STAPLES | 0.53% | Strong Buy |
| HEALTH CARE | 0.35% | Buy |
| INDUSTRIALS | 1.73% | Strong Buy |
| INFORMATION TECHNOLOGY | −1.56% | Buy |
| MATERIALS | 0.37% | Buy |
| REAL ESTATE | 1.35% | Strong Buy |
| COMMUNICATION SERVICES | −0.05% | Buy |
| UTILITIES | 1.80% | Strong Buy |
| FINANCIALS | 2.18% | Buy |
| ENERGY | 0.05% | Sell |
Bullish Drivers
1) Congress Coronavirus Action: Treasury Secretary Steven Mnuchin and Speaker of the House Nancy Pelosi (D-CA) said they are still willing to negotiate more this week on additional coronavirus stimulus.
2) White House Coronavirus Action: President Donald Trump signed several executive orders to extend unemployment insurance benefits, suspend payroll taxes, help with student loan payments, and avoid evictions.
3) The Federal Reserve Bank Coronavirus Action: Federal Reserve Bank of Chicago President Charles Evans said another round of fiscal stimulus is incredibly important to support the domestic growth outlook.
4) Positive Earnings Report: We just finished another big week for corporate earnings. Roughly 89% of the S&P 500 Index has now reported. And results continue to beat expectations. Wall Street analysts’ expectations were too low and are moving higher. Rising earnings and dividend estimates make the S&P 500 an increasingly attractive investment.
Bear Drivers
1) According to a new CBS poll, Biden Leading In Presidential Race: Democratic presidential candidate Joe Biden leads President Donald Trump in key battleground states Wisconsin and Pennsylvania. If Biden wins, we are expecting increased taxes, which will trigger lower earnings and bear market.
2) Coronavirus: The number of cases and deaths has declined; however, COVID-19 still remains a threat to the market. Several industries, such as travel and restaurants, have yet to recover and are not projected to recover any time soon.
