A large driver of December’s performance is retail sales data to indicate how confident consumers are with their financial status. Per the U.S. Department of Commerce data released December 16, 2020, year-over-year sales increased by 4.1% in November.
Advanced Retail Sales: Retail (Excluding Food Services)
Congress finally passed the much anticipated second COVID-19 stimulus package worth $900 billion. This will provide income-qualifying households with $600 per adult and dependent children and renew the $300 weekly unemployment benefits for 11 weeks. Larger checks for those who qualify are currently being discussed. We believe larger checks are likely needed in the short term to maintain consumer confidence and retail spending momentum.
Emergency Relief Package categories, in billions
With a couple of key events looming in January (Georgia Runoff, Presidential Transition, etc.)…another market adage comes to mind that might hold more weight than Santa Claus. “As January goes, so goes the year!”
“Then the Grinch thought of something he hadn’t before. What if Christmas, he thought, doesn’t come from a store? What if Christmas perhaps, means a little bit more?”