Stocks were lower in early trading this week as investors mull over a plethora of earnings, vaccine developments, and progress towards another fiscal stimulus bill. In a busy week with several key economic reports and well over 100 of the S&P 500 companies reporting earnings, Washington continues to compete for the attention of Wall Street. To add to the chaos, shares of the heavily shorted Game Stop (GME) and AMC Entertainment (AMC) skyrocketed as retail investors flocked to these names in an orchestrated attempt to squeeze major hedge funds out of their short positions. On the data front, we got Durable Goods numbers which showed strength in both the New Orders and Shipments components. Later this week, we get the first read of fourth-quarter gross domestic product (GDP), Initial Jobless Claims, Personal Income, and New Home Sales, among others. On Wednesday, the Federal Reserve concludes its January meeting followed by a press conference by Chair Powell. No significant changes are expected, but markets will be looking for shifts in tone given the new administration at the White House. Interest rates moved lower this week, with the yield on the 10-year Treasury note trading about 8 bps lower to 1.01% mid-week.

Source: GSAM, CNBC, JPM, Bloomberg, FactorInvestor

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