(DAILY NOTION): Mixed Day at Wall Street, How Would It End the Second Week of 2021? Next Mover: Biden's Stimulus Update, Earnings Report

NASDAQ 100 (as of Jan 14, 2021 at 2.55 p.m.)

Source: Yahoo Finance

SPX 500 (as of Jan 14, 2021 at 2.55 p.m.)

Source: Yahoo Finance

US30 (as of Jan 14, 2021 at 2.55 p.m.)

Source: Yahoo Finance

It was a mixed close at Wall Street as the NAS100 increased 0.43%, SPX500 ended 0.27%, while the US30 dipped 0.03%. Although the utilities and technology stocks kept the market above the flatline, the gain was capped by weakness in cyclical and energy stocks.

On the U.S. political front, outgoing President Trump was finally impeached, making him the only U.S. president to have been impeached twice. Ten Republicans from Trump’s own party joined forces with the Democrats at U.S House to vote for Trump’s impeachment.

However, this latest update from the U.S. political scene seems to be overshadowed by the anticipation of Biden’s stimulus package unveiling today. The stimulus package, reported by Cable News Network (CNN) to be as large as $2 trillion, clearly reflects President-Elect Biden’s stand of encouraging more spending now rather than later to drive the economy. After this announcement, the yield on benchmark 10-year U.S. Treasuries was up two basis points to 1.1105%

The head of Asia equity strategy at Societe General, Frank Benzimra, believes that the main question for the markets is when the Federal Reserve (Fed) would begin tapering its purchases. However, at this moment, he believes that it is rather premature as economic growth is accelerating and economic indicators strong. The Fed’s December Beige Book pointed towards a modest growth in economic activity as employment took a dip as a result of rising new cases.

Aside from the unveiling of Biden’s stimulus package, traders would also be watching the earnings report from big banks such as Citigroup and JP Morgan tomorrow, believed to be an indicator of economic progress.

Overall, there seems to a wait-and-see sentiment in the stock markets. However, the last two days of the week are probably the most exciting ones, with the unveiling of both Biden’s stimulus package and the earnings report. Let’s see how Wall Street would end the second week of the year.

FOLLOWME User Sentiment (as of Jan 14, 2021 at 2.55 p.m.)

SPX500

Short – 82.11%

Long – 17.89%

NAS100

Short – 74.49%

Long – 25.51%

US30

Short – 76.46%

Long – 23.54%