Week in Review: February 12, 2021

Equity markets enjoyed a positive week as investors remained encouraged by vaccine rollout progress and positive earnings reports. A record weekly inflow of $58B into global equity funds also helped boost returns. The S&P 500 closed Friday at yet another record-high, led by energy, as oil prices gained 5% during the week. New record highs were not isolated just to the US. In China, the blue-chip CSI 300 index, set a new record high for the first time in 13 years, while in Japan, the Nikkei 225, reached its highest level since 1990.

In Washington, the House passed a spending bill consisting of $1,400 stimulus checks for individuals making less than $100K, and married couples making less than $200K. With the conclusion of former President Trump’s second impeachment trial, the Senate will be able to take up the bill when Congress returns from its scheduled recess next week.

As the vaccine rollout continues, it is estimated that 11% of the US population has received their first shot and 4% has received their second. The Biden administration announced it secured an additional 200 million doses from Pfizer and Moderna. Along with the 400 million doses ordered by the Trump administration, the US will now have enough doses for its entire population.

Through Friday, 74% of S&P 500 companies had reported fourth quarter earnings, with 80% beating their consensus estimate. On average, companies are reporting earnings 15.1% above estimates. Currently, fourth quarter earnings are expected to grow 2.9%, a marked reversal from the expected 9% decline estimated at the start of earnings season.