It’s hard to believe that 2021 will soon be coming to an end and Thanksgiving is just around the corner. This week President Biden was able to get the infrastructure bill into law, the jury in the Kyle Rittenhouse trial continues to deliberate, and the FDA is expected to approve booster shots for all adults over the age of 30. In local news, the iconic Staples Center in Los Angeles has a new name after 22 years.
On Monday, President Biden signed the $1.2 trillion infrastructure bill into law. This bill will deliver $550 billion into America’s infrastructure over 5 years. It will include everything from bridges and roads, water and energy systems, to the nation’s broadband. California is set to receive $25 billion for public transit, wildfire preparation, bridge and road repair, broadband internet and more. The bill is significantly smaller than the $2.25 trillion American Jobs Plan that Biden had proposed back in March of this year. The legislation would directly add roughly $350 billion to the deficit, when taking into account the $90 billion of spending in new contract authority, said Marc Goldwein, Senior Vice President at the Committee for a Responsible Federal Budget, a nonpartisan group that tracks federal spending. Experts say the money is sorely needed to ensure safe travel, as well as the efficient transport of goods and produce across the country.
All eyes are on Wisconsin, as we wait for the verdict in the Kyle Rittenhouse homicide trial. Rittenhouse is charged with five felonies: first-degree intentional homicide, first-degree reckless homicide, attempted first-degree intentional homicide and two counts of first-degree recklessly endangering safety. These charges stem from the unrest last year in Kenosha, Wisconsin after the police shooting of Jacob Blake. Wisconsin’s National Guard is on standby near Kenosha in case they are needed when the verdict is announced.
The FDA is expected to announce that it will grant Emergency Use Authorization (EAU) for all adults over 30 to get the Pfizer booster shot. In September, Pfizer was authorized to give booster shots to anyone 65 and older, or 18 and over if they were at risk for severe disease. The FDA is convinced from data from a clinical trial showing that a booster improved vaccine efficacy for all adults. Wednesday, Pfizer announced that they are also seeking Emergency Use Authorization (EUA) of their Covid-19 oral antiviral treatment. Pfizer Inc. said that its experimental antiviral pill for COVID-19 cut rates of hospitalization and death by nearly 90% in high-risk adults.
Goodbye Staples Center hello, Crypto.com Arena. Crypto.com struck a 20-year deal with Staples owner AEG, to take over the naming rights of the arena. Staples Center is the home of the Los Angeles Lakers, the Los Angeles Kings, Los Angeles Sparks and the Los Angeles Clippers. The new name will take effect on December 25, 2021 and a new logo will be unveiled on that day; however all external signage will take until June to be updated. By the way, this deal was not paid in cryptocurrency. Below is a rendering of Staples Center after the completion of its rebranding as Crypto.com Arena.
Despite some volatility this week the S&P 500 and Nasdaq were up 1.1% and 1.5% however, the Dow Jones Industrial Average did not perform and was down (0.2%). The 10-year Treasury Yield is currently at 1.58% but is down (0.02%) from the previous week. A big storyline that boosted the Nasdaq for the week came from the rise in Technology stocks. The biggest factor to this rise came from Nvidia (NVDA) reporting its earnings yesterday. Nvidia reported sales of $7.1 billion beating expectations from $6.8 billion. This gain has investors becoming more optimistic about easing the supply chip shortage, suggesting that companies are elevating demand and will meet earnings for the coming year. As a reminder, the markets will be closed on Thanksgiving Day but will re-open on Friday, November 26th.
Next week, Apriem Advisors will have the following revised hours for the upcoming Thanksgiving holiday:
Tuesday, November 23rd – Close at 4 p.m. PST
Wednesday, November 24th – Close at 2 p.m. PST
Thursday, November 25th – Offices Closed
Friday, November 26th – Offices Closed
Thank you to all who attended our webinar earlier today on “The Permanent Problem with Transitory Inflation” with our Chief Investment Officer, Benjamin Lau, CFA and Jose Rendon, Portfolio Administrator. The video will soon be available for playback on our website.
Just a reminder that beginning December 6th our office will be undergoing construction and will not be available for in-person meetings. We will be available to meet in-person at alternate locations, by Zoom, or conference call. We will continue to update you on the progress and are excited for you all to see our updated office space in Irvine.
As we head into the final weeks of the year, if you have any items you would like to discuss for year-end, such as charitable planning, your Required Minimum Distribution, contributing or opening a retirement account, charitable contributions, gain/loss tax planning or simply review your accounts, please call our office at (888) 253-0288 or email Sunni@apriem.com.
Have a great weekend.