While the Presidents’ Day holiday brought a shortened week for traders, several concerns weighed on their minds throughout the trading session. New worries about rising bond yields, the coronavirus and widespread power outages in Texas sent stocks lower throughout the week. Traders also continued to monitor the stimulus situation and battle that’s now emerging for a large-scale plan by the Democrats. With much of the nation under severe weather conditions, analysts began to worry that the economic recovery might be stalled, and that stimulus action was needed now.
Earnings were also a mixed bag on the week. The majority of firms reporting have beaten analyst estimates. However, several bellwethers this week managed to miss and report less-than-ideal guidance figures. This gave investors pause on the notion that the economic recovery was well at hand.
Mixed economic data also added to this feeling. Key measures in labor activity, manufacturing and consumer sentiment all gave a cautious picture on the economy. With key end-of-month data coming up, traders are holding their breath that current issues won’t spill over.
In the end, the continued pressures on the economy sent investors to the exits, and sent the major averages lower on the week.
Be sure to check out our previous Wrap here, when a wild week sent the market’s to record highs.
