President Trump signed the stimulus and omnibus bill on Sunday. This funds the government through September 30th and provides multiple stimulus measures outlined below in our Dissecting Headlines section. For the week, the Dow Jones Industrial Average was +0.1%, the S&P 500 Index was –0.1%, and the NASDAQ 100 Index was –0.2%.
Initial unemployment claims during the week of December 19th decreased to 803,000 versus 892,000 the previous week. Continuing claims for the week of December 12th were 5.337 million versus 5.507 million the week prior.
According to Mastercard SpendingPulse data, holiday retail sales grew 3% year-over year and ecommerce sales increased 49%.
Since the social and economic impact of the COVID-19 took hold in the Spring, we have heard many people express the desire for 2020 to be over as soon as possible. We have finally made to the end of the year. This year has been a struggle for many. We wish everyone a safe and prosperous new year. Good-bye 2020, Hello 2021!
Financial Market Update
Dissecting Headlines: Stimulus and Omnibus Bill
President Trump signed the stimulus and omnibus bill. In addition to funding the government through September 30th, it has several programs targeted to provide relief for individuals and areas of the economy impacted by COVID-19.
The bill extends all pandemic unemployment insurance programs by $300 per week per person. It also provides $600 per person stimulus checks with changes depending on income. There is discussion of raising that amount to $2000 per person, but that is subject to an additional vote. The bill also provides $284 billion to the Small Business Administration and Payroll Support Program, $27 billion for the airlines and other transportation industries, $15 billion for live event places, and $84 billion for schools. Additional funds are also provided for vaccine distribution and testing.
The bill also rescinds more than $429 billion in unused CARES Act funds and forbids them from being duplicated without congressional approval.
Want a printable version of this report? Click here: NovaPoint December 28, 2020
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