By Bill Hornbarger, Chief Investment Officer
Three Things to Know
- Last week, the 10-year benchmark Treasury closed above 1% for the first time since March and the Treasury yield curve (2-year vs. 10-year maturities) traded at the widest spread since the summer of 2017.
- December capped the worst year for U.S. job losses in records tracing back to 1939. In 2020 the economy shed a net 9.37 million jobs, exceeding the 5.05 million jobs lost in 2009 during the global financial crisis. (source: The Wall Street Journal)
- In Saturday’s wild card game, Tom Brady became the oldest player to throw a TD pass in post-season history at 43 years, 159 days. (Source: NFL Research, @NFLResearch)
Three Things to Watch
- On Wednesday, consumer prices (CPI) will be released. CPI is expected to be up 0.4% overall and 0.1% core (ex-food and energy). Investors are becoming more concerned about inflation with easy monetary policy and trillions in fiscal relief coupled with rising material costs.
- On Friday, retail sales excluding auto and parts dealers are expected to decline for the third consecutive month, as the increase in Covid rates is weighing on consumers.
- The Fed releases the Beige Book on Wednesday and Chairman Jerome Powell speaks on Thursday.
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.