Market Wrap
Week Ahead
Narratives
Earnings
It was a very quiet session following the Thanksgiving holiday. COVID-related themes remained the key focus. Some of the concerns around the AZN vaccine and rising case counts and hospitalizations were offset by some positive commentary around the timing and speed of deploying a vaccine across the US population in the first half of 2021. Despite near-record case counts, there have been few updates around shutdowns or other mitigation measures, while the measures implemented continue to be narrowly targeted rather than the broad shutdowns that took place in the spring.
Other key themes mostly unchanged. Potential for fiscal policy action before inauguration ticked up in recent days, though nothing new on that front. A Janet Yellen-led Treasury also seen as a complement to Fed, with central bank tailwind still in focus given potential for changes in Fed asset purchase strategy as soon as December. Dollar weakness continues to get attention, while expectation for continued rotation trade toward value (despite pause in recent days), a batch of positive US data, a strong earnings season, and supportive positioning and sentiment among other factors in play this week.