Market Seems Subdued After Mixed Bank Results, Biden Stimulus Announcement

Market Seems Subdued After Mixed Bank Results, Biden Stimulus Announcement

Key Takeaways:



JPM



JPM

Morgan beats on top, bottom lines but warns of economic uncertainty

Wells Fargo



WFC

, Citigroup



C

report revenues that miss expectations

Biden's stimulus package includes raising minimum wage to $15 per hour



There's a phrase on Wall Street that investors often “buy the rumor and sell the fact.”

We may be seeing some of that this morning after President-elect Joe Biden late Thursday unveiled a $1.9 trillion stimulus plan that includes direct payments, increased additional federal unemployment help, state and local government aid, and raising the federal minimum wage to $15 an hour.

The market has been in an uptrend in part on expectations of fresh stimulus from the Biden administration. With that priced in, investors may be taking the actual announcement as a time to book some profits. There could also be some concern about how raising the minimum wage could affect businesses at a vulnerable time while the pandemic continues.



Biden's announcement came ahead of major bank earnings this morning, which