Stock Market Update Friday, May 8th, 2020
This morning the worst Jobs Report ever was released.
April showed that a record 20.5 million Americans lost their job. And the Unemployment Rate jumped from 4.4% to 14.7%, the highest since World War II.
So why are markets rallying?
It might seem counter intuitive for stocks to move higher on the worst jobs data ever. Even considering that the numbers weren’t as bad as expected – the forecast was for 21.5 million jobs lost and a 16% unemployment rate.
More than anything, traders are counting on the “worst” being behind us.
With more and more states opening back up for business and the government and Fed feeding the economy with stimulus, traders are hoping that April is as bad as it gets.
Traders are also hoping that the unemployment numbers rebound quickly. Approximately 78% of the Americans that lost their job were furloughed, which in theory means that the job loss is temporary.
The S&P finished with its 2nd best close since the economy shutdown due to coronavirus.
And the NASDAQ finished higher for the 5th day in a row, closing at the best levels since February 24th!
It was the first weekly gain for the major indices in three weeks with the S&P up 3.5%, DOW higher by 2.6%, and the NASDAQ rallying 6.0%.
Here’s where the major indices ended the day:
- The S&P finished with a 1.7% gain. Up 49 points, the S&P ended at 2,930.
- The DOW ended 1.9% higher. Adding 455 points the DOW closed at 24,331.
- The NASDAQ was up 1.6%. With a 142 point gain the NASDAQ finished at 9,121.
Crude Oil (CL) bounced back after yesterday’s reversal. With a 4.9% gain, Crude Oil ended the day at $24.71 a barrel.
Apple (AAPL) was up 2.1% after saying they will reopen Apple Stores next week. Apple closed at the highest level the stock has seen since February 21st.
And the airlines got a nice boost as well.
American (AAL) was up 6.3%, United (UAL) jumped 11.7% and Delta (DAL) was higher by 4.8%.
Earnings season is winding down. Under Armour (UAA), Cisco (CSCO) and Marriott (MAR) are a few of the bigger names reporting next week.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.