US Stocks closed at record high’s last Friday as traders were encouraged that the US economy would get another round of fiscal stimulus from lawmakers.
In the week ahead investors will be watching for news from a meeting the FDA is having where they may give emergency approval in the US for Pfizer’s COVID vaccine. We also have two high profile IPO’s from Airbnb and Doordash this week.
The large services sector of the U.S. economy mostly brushed off a record surge in coronavirus cases in November, but business leaders expressed greater worries about what lies ahead. A survey of senior executives at non-manufacturing companies dipped to a six-month low of 55.9% from 56.6% in October, according to the Institute for Supply Management. Readings above 50% signal that businesses are expanding, but the index has slowed two months in a row and fewer industries are reporting growth.
Mortgage rates fell again to the lowest level on record. But the boost home buyers are seeing from low interest rates has faded. The 30-year fixed-rate mortgage averaged 2.71% for the week ending Dec. 3, down a basis point from the week prior. This represents the 14th record low that Freddie Mac has reported in 2020.