Above the Fold

Congress Throws Americans a Last-Minute Lifeline

Although the granular details were not yet known at the time of this writing, sources say that congressional leaders approved a $900 billion stimulus package late Sunday that will include $600 in direct payments to Americans making $75,000 or less or $150,000 for married couples. The stimulus will also include $600 for each dependent, up from the $500 previously issued. Experts close to the matter believe that the payments could come within weeks of the bill’s final passage. 

It’s been nine months since the initial CARES Act, which was more than double the size, but this latest coronavirus relief package will include similar, yet scaled relief for the unemployed, along with $284 billion for businesses affected by the virus, in addition to a revitalization of the Payment Protection Program. The latest relief measure is also expected to provide $82 billion for colleges and schools, $25 billion in rental assistance, the extension of the eviction moratorium and funds for COVID-19 vaccine distribution. More details are sure to emerge in the coming days, but markets seemed underwhelmed by the deal as stocks moved lower Monday morning. 

Three Things 

1. Retail Reorganizations Reach Great Recession Levels – Between the pandemic lockdowns, social distancing and the exponential rise in digital engagement, retail bankruptcies surged in 2020. By mid-November, nearly 50 publicly traded retailers filed for bankruptcy protection. A separate Dec. 4 report by Coresight Research counted more than 8,400 store closures year-to-date. 
2. Intel, Apparently, Can’t Catch a Break – Apple has already phased out Intel chips in many of its latest devices as it can produce faster, cheaper processors in-house. According to tech-watcher The Verge, Microsoft is also reportedly designing its down ARM-based CPUs for use in its Surface PCs and servers. Microsoft already works with Intel competitor AMD for several special versions and applications, and this latest news adds more pressure on Intel’s one-time chip dominance.
3. Time to Start Hoarding Aluminum Foil? – Even though there’s no real shortage of the popular industrial metal, prices for aluminum have skyrocketed more than 40% since May. Soaring global demand for autos, planes and other products, along with potential sanctions against Russian producer United Co. RUSAL, are all stoking the rally. Experts note that beverage cans, which have seen a meteoric rise in usage during the pandemic, are a major price driver as well. 

Did You Know?

More Sunshine is on Its Way!

Yesterday marked the winter solstice, the shortest day of the year in the Northern Hemisphere, and the official start of winter. For six months, the amount of daylight has been slowly declining, but will now begin to slowly increase as we move toward spring and summer. The farther away from the Equator you go, the more dramatic the changes are, and if you happen to find yourself in Prudhoe Bay, Alaska, during the solstice, there won’t be one drop of sunlight as it is within the Arctic Circle. The solstices, both winter and summer, have been celebrated by many cultures throughout history for different reasons. Ancient Romans celebrated what they called “Saturnia” during the solstice. During this festival, grudges were forgiven, wars were interrupted and citizens were generally festive. Some of those customs have influenced our western Christmas and New Year’s celebrations.