Stocks both domestically and abroad traded higher this week leading up to the inauguration of President Joe Biden. Markets have been encouraged by early earnings reports as well as hopes for further fiscal stimulus. Notably, Netflix (NFLX) surged 15% following fourth-quarter earnings results on Wednesday, leading the NASDAQ to record levels. Incoming Treasury Secretary Janet Yellen opened the door for stimulus this week, unveiling a $1.9 trillion Covid-19 relief proposal to lawmakers on Tuesday. Yellen also helped ease the concerns of investors regarding the national debt noting that while debt levels have risen, interest burden (the share of interest costs relative to income) has not (Factor Investor). On the economic front, data is light this week with initial jobless claims, housing starts, and existing home sales expected later this week. Interest rates were relatively flat for the week, with the yield on the 2-year and 10-year Treasury notes trading around 0.13% and 1.09% respectively mid-week.
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Sources: GSAM, CNBC, JPM, Bloomberg, FactorInvestor