US stocks will start the new year positively, after ending a volatile 2020 with a new high.
It seems that investors are once again abandoning the worsening situation of COVID-19, instead of focusing on the deployment of vaccines around the world. According to the COVID-19 follow-up project, hospitalizations in the United States reached a record 125,544 on Sunday, while the United Kingdom has registered 50,000 new cases for six consecutive days, with the forecast to restrict restrictions.
However, the UK began releasing the vaccine from pharmaceutical company AstraZeneca and Oxford University on Monday, boosting sentiment. The FTSE 100 UKX,
led the way, rising 2.5% as metal prices rose
HG00,
SI00,
helped the mining sector.
After meeting in late 2020, with record highs for the Dow and the S&P 500, the top three U.S. benchmark stock indices would make gains on the first trading day of the new year.
In ours call of the dayLPL Financial’s chief market strategist Ryan Detrick said the strong end-of-year concentration in 2020 could have “smiling bulls” in 2021.
The S&P 500 SPX,
increased more than 14% in November and December, ending a tumultuous year with a new all-time high of 3,756.07, gaining 16.3% in 2020. Detrick said an increase of 10% or more in recent two months of the year has led to a higher S&P 500 the following year ever since World War II. “In fact, January was also higher every time, so maybe this strong rally is a track to get higher prices. [2021]”.
On the previous five occasions, the index rose more than 10% in November and December – 1954, 1962, 1970, 1985 and 1998 – the S&P 500 gained an average of more than 18% the following year. The index also rose on January 5 and rose 3% on average.
The following graph shows the typical appearance of a year after 10% or more of November / December rallies. “Again, strong returns are the playbook historically,” Detrick added.
Source: LPL Research, FactSet
The markets
US stock futures YM00,
ES00,
NQ00,
pointed higher Monday early, with the Dow Jones Industrial Average DJIA,
to gain 150 points at the opening. European stocks began in the foreground year, driven by the deployment of vaccines across the continent. Asian markets also rose to start the new year amid global optimism. The US dollar index DXY,
it fell 0.3% to 89.51, the lowest level since April 2018.
The buzz
Democratic lawmakers on Sunday called for swift and serious action against President Donald Trump, after he was heard on a leaked audio tape pressureing Georgia’s Republican secretary of state to “find” more votes to reverse his electoral loss to the state.
Tuesday marks the election of two U.S. Senate seats in Georgia, which will decide whether Democrats or Republicans control the Senate.
Teledyne Technologies TDY Industrial Conglomerate,
said it agreed to buy Flir Systems FLIR thermal imaging camera supplier,
in a cash and stock deal valued at about $ 8 billion.
The shares of the UK betting company contain ENT,
formerly GVC Holdings, rose 26% on Monday, after rejecting a bid of 1,383 pence per share proposed by MGM Resorts MGM,
which valued the company at £ 8.09 billion ($ 11.06 million).
Bitcoin BTCUSD,
it shot up to a record high of $ 34,000 over the weekend, before falling 11% on Monday morning to $ 29,800.
A UK judge ruled on Monday that Julian Assange, the founder and editor of WikiLeaks, should not be extradited to the United States.
Centene Medical Insurance Corp. CNC,
said Monday it agreed to acquire Magellan Health Inc. MGLN,
for $ 95 per share, in a deal with a business value of $ 2.2 billion.
Carl Icahn has sold more than half of his stake in Herbalife Nutrition Ltd. HLF,
and resigns from his positions on the board of the nutritional supplements company, taking a step back from a long-standing investment he fiercely defended against the attack of rival activist investor William Ackman.
Random readings
The population of South Korea falls for the first time in its history.
Swan rescued after hours stuck in the frozen loch.
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