Your Wednesday Blip 12/16/20

Your Wednesday Blip 12/16/20

Stocks ended the day mixed as the Dow fell while the NASDAQ gained ground to a new high. At the closing bell the Dow was off 44 at 30,154. Trading volume was higher across the board. It was a quiet day.
The Federal Reserve held its last policy meeting today and decided to maintain the status quo and keep rates where they are. Some had been pressuring the Feds to lower rates but Chairman Powell resisted this move while reiterating the Fed’s commitment to boost inflation above its 2% target before considering a rate hike. Gurus are speculating that the Fed is concerned that lowering rates would further fueling a hot housing market. Along with a this concern is rising gubment debt and a stock market that could become too speculative should interest rates be lowered at this time.
November retail sales came in weaker than expected with a decline of 1.1%. Car sales, furniture, electronics and clothing were all lower while building materials and home based food and beverages were up. The October retail reading was also revised lower. What appears to be happening is that consumption shot up well above trend lines as the economy started to snap back from the pandemic lockdowns and is now reverting to the mean. Consumption is 2/3rds of the economy so these latest readings indicate that Q4 GDP readings might be less than recent forecasts.