3 Stocks That Should See A Boost From A Third Round Of Stimulus Checks

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The markets were up on Friday, Feb. 5 to finish the best week since early November, even as the most recent jobs report missed estimates. It appears to be a case of déjà vu, with investors betting that the negative economic news will bolster the odds that the newest COVID-19 relief package will get approved. It was only just in December when we were in the same situation.

This spending is viewed by many to be critical to help support the economy. One area of the package that the President appears to be open to negotiation for is the direct payments to individuals.

Whether it’s $1,000 or $1,400, I expect that money will get to the people that need it the most. That’s why I am recommending stocks of companies that should benefit from Americans spending this stimulus, such as Costco Wholesale Corporation (COST), Target Corporation (TGT), and Dollar Tree, Inc. (DLTR).

But before I get into evaluating those stocks, let’s take a look at the markets over the past week.

Market Commentary

Last week’s pullback appears to have been temporary, as stocks finished the week hitting record highs once again. Last week’s high volatility also took a break after soaring to its highest level since October. Of course, this was due to individual investor excitement on a handful of stocks, leading to sharp rises in prices.  

Things seemed to have settled down, at least a little for now, as the market rally was driven by the President’s push to pass a $1.9 trillion relief package. Positive news on the vaccine front from Johnson & Johnson (JNJ) also added to the mix. The company filed for an Emergency Use Authorization of its single-shot candidate. While not as effective as Pfizer (PFE)'s and Moderna (MRNA)'s vaccine, a single shot that doesn’t require special storage could be a game-changer in getting more of the population vaccinated.

A faster rollout of COVID-19 vaccines could accelerate the speed of the economic recovery and trigger a domino effect leading to higher corporate profits and higher stock prices.

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Roger Keats 3 weeks ago Member's comment

enjoyed the article-----hope it's right on