Welcome to edition 510 of Insider Weekends. After two weeks of significant buying that saw insiders pick up more than $1.2 billion worth of stock, insider buying decreased significantly last week with insiders purchasing $117.91 million of stock compared to $533.25 million in the week prior. Selling also decreased with insiders selling $442.67 million of stock last week compared to $470.58 million in the week prior.
This slowdown is the typical end of quarter slow down as companies enter their quiet period before earnings season.
News of a massive $2 trillion stimulus package that passed both the senate and the house helped buoy markets with the S&P 500 rebounding more than 10% for the week despite a 3.37% drop last Friday. The package significantly boosts unemployment pay with laid off workers getting an additional $600 per week for a period of four months above and beyond what they get through their state. This could translate into laid off workers getting over $1,000 a week in some instances. Most adults will get a one time payment of $1,200 (with income based limits) and married couples will also receive an extra $500 per child under the age of 16.
Small businesses also have several benefits under this stimulus package including the ability to defer 2019 payroll taxes with 50% due by the end of 2021 and the other 50% due by the end of 2022. Small businesses can apply for loans through their banks that are backed by the small business administration and have a loan forgiveness clause. According to this article in The New York Times,
Loans are limited to $10 million, to businesses with 500 employees or less. Businesses that have recently laid off workers would be required to repay a larger portion of their loans, and loans covering salaries of over $100,000 a year wouldn’t qualify for forgiveness.