Stocks terrible week ends on a positive note, Last-ditch stimulus bubble pops, Business investment looks durable
US stocks are bouncing back as investors jump back on the mega-cap tech trade and after a couple battered cruise companies got upgraded. Optimism that stemmed from the restart of negotiations between Democrats and Republicans is quickly fading. It seems the last-ditch stimulus bubble is already popping because they are not any closer to a deal. Democrats have restarted negotiations with a $2.4 trillion stimulus proposal, almost a trillion more than what President Trump hinted with what he would be willing to support.
It was a bad week for stocks and Friday’s buying does bring much confidence.
US orders for durable goods rose at a slower pace confirming the leveling off with the economic recovery. A better-than-expected business investment reading was a bright spot in today’s report. Capital goods rose 1.8%, better than the 1.0% consensus estimate and lower than upward revised 2.5% prior reading.
Sales of computers,