The Dow Jones Industrial Average (DJIA), the price-weighted index that tracks 30 large blue-chip companies, made history this week by closing above 31,000, up from it’s 30,000 high set in December. For the index, it was its fastest move above a 1,000-point marker in two years.
Factors to Consider
1. On January 6, 2021, rioters stormed the United States Capitol sending a shock wave through our country, leaving many asking how this could ever happen given the procedures in place to prevent attacks on our government.
2. The Democratic Party took control of both the House and the Senate giving Democrats the chance to move on large parts of president elect Joseph R. Biden Jr.’s ambitions for the economy, health care, climate change and more. The Republican Party and its members are left with a feeling of uncertainty related to the long term effects this will have on the country.
3. The US Department of Labor Statistics reports that “total nonfarm payroll employment declined by 140,000 in December, and the unemployment rate was unchanged at 6.7 percent. The decline in payroll employment reflects the recent increase in coronavirus (COVID-19) cases and efforts to contain the pandemic. In December, job losses in leisure and hospitality and in private education were partially offset by gains in professional and business services, retail trade, and construction.”
4. The initial $600 stimulus checks have begun to be distributed. Talks continue regarding another possible round of stimulus checks estimated to be $2,000 per tax payer.
5. Thursday’s increase in Tesla’s share price pushed Elon Musk past Jeff Bezos, who had been the richest person since 2017 and is currently worth about $184 billion.
6. COVID-19 cases continue to escalate, with a continued increase in associated deaths.