$1.9 Trillion with a T

Tale of the Tape

Good evening, folks. Happy Friday Jr. 🙂

The market was mixed as we rotate back to the Russell 2000. The small-caps cruised to another all-time high while the S&P 500, Nasdaq, and Dow all closed lower.

Energy was the strongest sector as it encroaches on last summer’s high. Real estate, financials, and industrials all posted modest gains. 

Bitcoin bounced back and briefly traded above 40K. When will the volatility subside? Maybe it just needs time. 🤷‍♀️

Biotech broke out to blue skies. ☀️ iShares Nasdaq Biotechnology ETF $IBB bopped 2.43% to close at a new all-time high. Check out its monthly chart:

The US Telecommunications ETF $IYZ closed at a 3-year high after Acacia Communications announced its merger with Cisco. $ACIA climbed 31%. Congrats to all the longs!

Stitch Fix sailed 13% and GameStop gained another 27%. Shake Shack continued its streak. $SHAK is up 23% in the last 3 days.

President Elect Joe Biden will share the details of his $1.9T stimulus plan. 💸 See more below.

Earnings season is here. JPMorgan and Wells Fargo will kick off the festivities, as the two report early tomorrow morning. Where will the financials float next? Place your bets…  

Here are the closing prints: 

S&P 5003,795-0.38%
Russell 20002,155+2.05%
Dow Jones30,991-0.22%

$1.9 Trillion with a T

That’s $1,900,000,000,000, a number so big it needs to be written out. And Joe Biden plans to do exactly that on a check to America.

In a speech scheduled for tonight at 7:15 EST, Joe Biden will go over his proposed stimulus package, titled “The American Rescue Plan.”

Here’s what we know so far: The plan will feature direct payments of $1400 to most Americans, it will increase the federal unemployment benefits to $400 through September, increase the federal minimum wage to $15, extend the eviction and foreclosure moratoriums through September, and provide new money to a variety of programs.

Here’s the WSJ with more.

Jobless Claims Update

Wall Street expected 800,000 total jobless claims filed this week, but today’s report showed worse— 965,000 jobless claims have been filed, the US’ highest unemployment rate since August. 

Continuing jobless claims also spiked to 5.27M, rising for the first time since November. Here’s a chart: 

Jobless claims hit the highest mark since mid-August. How will the Q4 GDP numbers look? Eddy Elfenbein is “afraid it won’t be good.”

Go Big or Go Home

Luckily, with New York’s new proposed transit overhaul, you’ll be able to do both!

Today, NY Governor Andrew Cuomo announced a new $306B expansion for the NY transit system that focuses on adding train lines, expanding airports, and making hubs of transport easier to understand.

The project is code-named “Empire Station Complex Project,” and was called “the most ambitious mass transit development in the United States of America” by Cuomo.

He unfortunately didn’t mention how this project would be funded. But hey, that’s the easy part, right? 😂

Here’s Bloomberg with more.

IPO Insanity

IPOs popped off today. We had two new issues while Affirm dazzled on its second day. ✨

Poshmark went public and posted a 141% gain. Lightwork. $POSH opened at $97.50 and closed at $101.50, much higher than the IPO price of $42/share

Maybe three time’s a charm, because Petco popped in its 3rd IPO. The pet supply retailer raised $864M after selling 48M shares at $18. $WOOF barked +63% to $29.40 after reaching $31.08 intraday.

Affirm confirmed its strength today, ascending another 18%. This comes just one day after $AFRM surged 98% in its trading debut. 

Here’s the 5-min chart:

Affirm closed at $114.94, well over 2x the value of its $49 share pricing.

Is the IPO insanity here to stay? Who knows, it’s 2021 after all…

Earnings This Week

Be sure to know when your stocks report earnings. Here’s the earnings calendar

Links That Don’t Suck

🍿 The Fletch Investor: It’s All Ball Bearings… and Hydrogen 

🌇 Dramatic Drop in Skyscrapers Built in 2020 as Coronavirus Impacts Global Construction

🍇 The Napa Estate Behind Ovid Wine Is on Sale for $18.5 Million

🎶 Dan Runcie – The Business of Hip-Hop & Music

🧠 Denise Shull of The ReThink Group: How Anyone Can Build Habits For Optimal Wellness, Performance, and Focus

✏️ A Few Thoughts On Writing

🏙️ Foster + Partners Reveals Quartet of Aluminium-Clad Skyscrapers in Qatar

🍄 Super Nintendo World Theme Park Unveils Virtual Tour Ahead of Grand Opening in Japan

🌡️ 2020 Ties for Hottest Year on Record, NASA Says