Collaborative Wealth

Stocks open firmly higher. US markets opened higher following the emergency-use approval of the Pfizer-BioNTech COVID-19 vaccine.

As the US economy continues to transition during the current pandemic— where many local and state governments are still enforcing restrictions affecting economic output—this, along with changing consumer preferences, might cause supply constraints. We assess COVID-19 effects on current business conditions.

US equities open marginally higher. US stocks opened little changed this morning following a mixed close Wednesday. Market participants are keeping an eye on Washington’s efforts on more fiscal stimulus.

Not surprisingly, corporate credit spreads widened dramatically back in March 2020, making corporate bonds cheap relative to historical averages. (Credit spreads are the extra yield corporate bonds offer versus similarly dated Treasuries).

China’s official purchasing managers’ index (PMI) for manufacturing expanded for the ninth straight month, rising to a better-than-expected 52.1—the highest level since September 2017. The services gauge at 56.4 was even stronger, highlighting China’s effective virus containment. As recoveries for the United States and Europe stall, China’s growth continues to stand out globally.

COVID-19 cases have been rising in several regions around the world, prompting many countries to implement new restrictions to curb the spread of the virus.