We Don’t Need No Stim(-ulation). Apparently, investors don’t need stim to go from bottom left to top right when hope is driving the boat. As a choppy week comes to an end, stocks were given a little gift this morning in the form of better retail sales and consumer sentiment, which has been good news taken as good news for once, rather than data potentially solidifying Republicans’ stance on stim. Further, leading indicators TRAN/S5RAIL/FDX all closed at all-time highs (though JB Hunt and Kansas City Southern reports weighing today). Investors have had a lot on their shoulders of late (ya think!?) between insecurity about the economy, renewed corona concerns, an impending election and the fiscal stim tug-of-war (in no particular order). However, after 3 days this week of declines, all three major US benchmarks have been able to re-route into positive gains on this day of options expiry. From where does this confidence stem? FOMO, for one. Also, earnings have been ok (who needs Banks anyway), and Covid is Europe’s problem (this week). Not to mention, stocks look ever shinier when one looks at yields. So, why let future potential problems get in the way of gains now!?
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