Posted on 06/03/2020 3:27:12 PM PDT by Signalman
Nothing’s Gonna Stop Us Now. Another day, another rally for the stock market, this time buoyed by some actual good news.
The stock market’s rally in recent weeks has felt awfully disconnected from the grim reality on the ground. And that only felt more true as protests erupted around the country following the killing of George Floyd by a Minneapolis policeman.
Investors, however, are motivated by fear and greed, and right now both are helping—fear of missing out and greed as the market goes higher. That’s especially true after the bleakness was interrupted by some better economic news—the ADP payrolls report, which showed 2.6 million Americans losing their jobs in May, well below forecasts for nearly 9 million. That’s still a huge number of jobs lost, but it’s at least some evidence that the stock market really is reflecting a quick recovery in the U.S. economy.
That evidence will need to be confirmed by other jobs reports this week, including unemployment claims on Thursday and the official payrolls report on Friday. But for now, it’s great news for the U.S. economy. “Labor market developments are the most important driver of the growth outlook going forward,” writes Evercore ISI’s Dennis DeBusschere. “The better the job data, the lower the bankruptcy risk.”
The stock market loves it. The Dow Jones Industrial Average has gained 411.83 points (Up 527 today), or 1.6%, while the S&P 500 has risen 1.1%, and the Nasdaq Composite has advanced 0.6%
(Excerpt) Read more at barrons.com ...
Yeah. And the “protests” have shown the shut down is a scam.
A lot of cash still on the sidelines from savings, stimulus, etc
Also tremendous pent-up demand right now for services (e.g. restaurants, home improvement, travel, etc)...
demand that can only be fulfilled by increasing labor.
From the headline, I thought “the rally” pertained to Trump’s rallies starting up again, no doubt! (If you can have protesters, why not rallies).
You mean the Fedmarket?
President Trump should just call his rallies..Peaceful Protests. Then he can have a million people there with no problem.
the ADP payrolls report, which showed 2.6 million Americans losing their jobs in May, well below forecasts for nearly 9 million.
Well, where have all the people gone, long time passing....
San Francisco is a ghost town as is Manhattan
Silicon Valley? Same as the two cities
Someone needs to get back to work.
Where else are you going to put money?
It was overbought before Covid. It’s even more overbought today.
It was overbought before Covid. It’s even more overbought today.
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Absolutely. And there are a lot of economic headwinds heading our way.
They say the market climbs a wall of worry but this wall is unlike any we’ve ever seen before.
Suddenly cities will rediscover ‘free speech zones’ and barricade his supporters into public pens to run the gauntlet through past democrats throwing rocks and explosives. While the police watch.
Because they realize Covid19 was a hoax now.
Mr. Market is smart. Big money is leaving the sidelines.
THAT is an exceptionally great idea!
It is rallying because the fed is printing and buying everything!
They are working from home because they are white collar vs blue collar.
You are correct.
Good explanation. I wanted to reply to some of the ignorant posts earlier, but it is a waste of time to argue with an idiot. There is tons of cash, pallet loads of cash, around the world that is looking for a secure place for their fortunes. America is not ideal, but it remains far ahead of whoever is in second place. Money always goes to where it is well treated.
I don’t doubt the rally, its great but it has little to do with the overall economy. 40 million plus people are not working who were working before and that number is going much higher. The DOW going up is pretty irrelevant.
What is telling you the big money is leaving the market?
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