US stocks fell over the week on disappointing economic news, a continuing surge in the coronavirus deaths and hospitalizations and amidst President Trump’s second impeachment. The S&P 500 dropped 1.5% and the Dow fell 0.6% for the week. Small caps held up well however with eh Russell 200 up 1.5%. Abroad, the FTSE All World Ex US was down 1.3% for the week. The yield on the 10-year Treasury eased over the week to finish at 1.10% down from 1.13%.
US Inflation picked up modestly in December rising 0.4% and was up 1.4% over 2020.
President elect Joe Biden proposed a $1.9 trillion coronavirus relief package.
New jobless claims showed 965,000 people applied for jobless benefits, more than economists had expected and the most since March.
December retail sales fell 0.7%, more than expected.
Consumer confidence fell in December.
JP Morgan, Citigroup, and Wells Fargo all posted better than expected earnings.
Earnings for S&P 500 companies are expected to decline 6.8% for the 4th quarter. The expected earnings decline at the start of the 4th quarter was -12.7%.