Wall Street's rally accelerates after stunning jobs report
Source: AP
By STAN CHOE and DAMIAN J. TROISE
Stocks are rushing higher in early trading Friday after a stunningly good report on the U.S. job market gave Wall Streets recent rally another shot of adrenaline.
The S&P 500 was up 2.2% within the first 15 minutes of trading after the government said that U.S. employers added 2.5 million workers to their payrolls last month. Economists were expecting them instead to slash another 8 million jobs amid the ongoing fallout from the response to the coronavirus pandemic.
While economists cautioned that its just one month of data and could be giving false hope, the report gives credence to the building optimism among stock investors that the economy can recover relatively quickly from its current hole. That hope has been a big reason for the better than 40% rally for the S&P 500 since late March.
The S&P 500 is now down only about 6.3% from its record set in February after earlier being down nearly 34%.
A woman walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Friday, June 5, 2020. Asian markets are mostly lower after Wall Street rally takes a breather, as investors parse unemployment data. (AP Photo/Eugene Hoshiko)
Read more: https://apnews.com/c659fdf71287b356513d9e6765407c71
jimfields33
(15,450 posts)We do need the economy to recover. I doubt anybody wants it to fail.
KPN
(15,585 posts)benefits everyone who has already been hurt -- aside from on Wall Street. Stocks soaring is not a sign of economic recovery when measured by the average person.
What about the job numbers? I'm scratching my head trying to figure how the job estimates can be off by 11 million. Something's screwy.
Dopers_Greed
(2,640 posts)We are a total oligarchy now
Kingofalldems
(38,360 posts)Trump had zero to do with it.
Kingofalldems
(38,360 posts)at140
(6,110 posts)March-April 2020 were the opportunity of a lifetime to get into stock market.
I was too scared of the virus and stayed mostly out.
Gonna regret the rest of my life.
Time will tell.
empedocles
(15,751 posts)Steelrolled
(2,022 posts)When things are looking bleak, I always tell people to look at the long-term history of the SP 500. Time is your friend.
Dopers_Greed
(2,640 posts)The Fed has basically insured profits for wealthy investors
Steelrolled
(2,022 posts)Your loss was only hypothetical.
There were people who sold low during the panic, and because the rebound was so quick, did not get back in fast enough. Once prices go above the sell price, it can be very difficult (psychologically) to buy back in. In this case, it just got worse with every passing week as the market rose.
I toyed with the idea of buying during the panic, but I am already highly invested in the market. So I did my best to just not think about it.
at140
(6,110 posts)You are doing just fine. I was mostly in junk bond funds in March, and that saved my portfolio from the bigger plunge in stocks.
So I did sell the junk bonds and switch to stock funds, but it was only 25% of portfolio. Looking back in hindsight, Of course 100% switch would have been wonderful, but at my age, I am more and more risk averse. I intend to get out of stocks before October.
moreland01
(735 posts)https://www.bloomberg.com/opinion/articles/2020-04-30/stock-traders-should-heed-history
False Dawn:
That strong rebound in late 1929 and early 1930 turned out to be a short blip in the stock market's long decline
There's a great chart in the article that illustrates the false correction.
I'm not getting back in the stock market until trump is GONE!
at140
(6,110 posts)The biggest problem in 1929, IN MY OPINION was, you could buy a dollars worth of stocks with 10 cents down payment.
That is enormous leverage and as soon as market dropped 10%, the margin calls killed those people buying on margin.
Been there done that back in mid-1980's. Margin calls wiped me out.
soothsayer
(38,601 posts)Peregrine Took
(7,408 posts)He's already going to be crowing about it this morning.
Capture the news cycle on Friday..will be the talk of MSM all weekend.
empedocles
(15,751 posts)the VIX [velocity index], is soft -7%.
Would not be surprised to see the sophisticated speculators quietly selling into unsophisticated, small investor/speculator buying surge.
KPN
(15,585 posts)Smickey
(3,226 posts)of those things that make you go hmmmm.
bucolic_frolic
(42,656 posts)Is it $3 Trillion now? Hedge fund play money. We don't have markets now.
I sold most positions this morning. Even oil.
The "recovery" has thrown a big wrench into gold and silver.
ouija
(397 posts)Im not sure about these numbers. I want to see more information first
KPN
(15,585 posts)11 million? Seriously? I say "almost" because I'm frankly not sure about the "trust" part at all.
empedocles
(15,751 posts)gold and silver in the short term.
bucolic_frolic
(42,656 posts)it's prob temporary. I do get the sense they create multiple paths to lead the masses down, then they crash them and take their money.
KPN
(15,585 posts)investigation. tRump and his goons have manipulated volatility ever since.
And to think, the GOP wants everyone to buy into doing away with Social Security in exchange for personal retirement investment accounts essentially. Fucking parasites! (You can robably tell I'm a tad angry this morning).
KPN
(15,585 posts)(my wife and I) are retired and couldn't risk further losses and still be able to live our retirement life as we had planned. Bad move on our part it turns out. It seems like our retirement plans are nevertheless at risk going forward from likely inflation as well as dollar deflation. Can't win for losing.
at140
(6,110 posts)There is a 30 day minimum hold required by my mutual fund.
Hoping and praying market will not crash before end of June.
KPN
(15,585 posts)Ive never heard of a 30 day hold. Ive heard of 30-60 day waiting periods befor you can buy back in to a fund, but not a 30 day hold. Whats the penalty if you just withdrew to cash or rolled the account over into another fund/instrument?
at140
(6,110 posts)and then I will not be allowed to trade within 30 days.
So I will just wait until 30 days are over in June.
Steelrolled
(2,022 posts)The employer agrees to Broker rules to discourage frequent trading to get a better deal. Normally it isn't a big deal - 401K's are intended for long term investment.
at140
(6,110 posts)ashredux
(2,593 posts)This is not a realistic snapshot.....dont buy into his grandstanding
Auggie
(31,059 posts)ashredux
(2,593 posts)This rally will fizzle quickly
KPN
(15,585 posts)going on over the last month.
at140
(6,110 posts)overall the trend of new infections and death is down, but there are pockets in the country with higher rates.
Auggie
(31,059 posts)more of us are taking precautions now than a few months ago. I still think we're headed for real trouble ... first in pockets, then regions, then states.
at140
(6,110 posts)the main precaution to avoid infection is-----never touch face with unwashed hands.
I took in a crowded cruise ending 1st week of March, been to grocery stores every week, to cancer doctor's clinic every 3 weeks with wife, visited banks, restaurants etc. I am disciplined to avoid touching face, and still no infection. I did not start wearing mask until month of May.
Auggie
(31,059 posts)KPN
(15,585 posts)Last edited Fri Jun 5, 2020, 02:21 PM - Edit history (1)
Total unemployment that is.
WTF? And not a peep about that fact in the media that I've seen.
OrlandoDem2
(2,064 posts)State and local budgets are decimated thanks to the recession. A decline in sales taxes will result in layoffs of public sector jobs as state governments look to balance budgets. It will be ugly when the new fiscal year starts.
Public sector employees need to start saving their pennies because there will be a blood bath.
Steelrolled
(2,022 posts)This is a different kind of recession than what we are used to.
KPN
(15,585 posts)a boatload of manipulation going on and it won't end well for many people -- like tens of millions -- if we don't win the WH and Senate and put the nation back on a less volatile footing. Furloughs may help and actually till then, but not beyond that.
KPN
(15,585 posts)Has there ever been a miss anywhere near as huge as that? I know these are unique and different times, but 11 million? Really? Better question: do you trust these numbers coming from this administration?
Evolve Dammit
(16,632 posts)stocks and zero savings. This has been a massive give-away and cash injection to puff up corporations and Wall St. Reality will set in later. Some companies (food, drugs, PPE, Clorox) will do very well. Others will have drastically reduced earnings as C-19 continues, unchecked in many states. And average citizens will have to fight over scraps (like the remaining jobs), at the risk of getting sick.
Dopers_Greed
(2,640 posts)Jobs numbers are "stunningly good".
Give me a fucking break. All news outlets are actively working to keep Repugs in power
Pantagruel
(2,580 posts)Like seemingly every Dem POTUS, JB will need to fix the GOP damage. And again the GOP will spend his entire term whining how JB isn't cleaning up their mess fast enough.
Bengus81
(6,907 posts)All the FAKE unemployment numbers will end when Trump is gone.
Aviation Pro
(12,052 posts)This is temporary and will reverse after the payroll protection plan money runs out. You can't run an economy on magical thinking and with most businesses down 50% - 80% of their capacity. The next step is layoffs not furloughs.
modrepub
(3,467 posts)a 13% unemployment rate.
It's going to take awhile for all of this to sort itself out. If you're brave or persistent, you'll do fine. Don't change your plans and market involvement. It's almost impossible to do better than some market average over the long haul (just don't put your $ in actively managed plans). Move to annuity types of investments once you get to your retirement years. You'll "loose" opportunities for market growth but having a "fixed" income based on generally safe insurance firms is worth your peace of mind; better a good night's sleep than worrying about market volatility.
For those doom & gloom types who espouse preparing for a total systems collapse, taking that type of position will probably only guarantee that you'll be among the last human beings to starve to death. We function best with a well integrated society.
Maxheader
(4,366 posts)before stumpy causes the markets to fall....again..
onetexan
(12,994 posts)Steelrolled
(2,022 posts)Polybius
(15,235 posts)Just sitting back and doing nothing. It's all tax-free until (if) I sell. Stocks you hold onto you pay zero taxes on, even if they go up 1,000%.