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Omaha Steve

(99,055 posts)
Fri Jun 5, 2020, 10:10 AM Jun 2020

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 Street’s 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 it’s 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

56 replies = new reply since forum marked as read
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Wall Street's rally accelerates after stunning jobs report (Original Post) Omaha Steve Jun 2020 OP
For the country, this is good. jimfields33 Jun 2020 #1
Yeah, we need the economy to recover. I'm not sure it's going to actually happen in a way that KPN Jun 2020 #12
The recovery has only been for the wealthy Dopers_Greed Jun 2020 #15
Thanks to the stimulus package we pushed through. Kingofalldems Jun 2020 #40
Oops. Kingofalldems Jun 2020 #44
Dammit my lack of courage cost me plenty at140 Jun 2020 #2
Maybe not Dream Girl Jun 2020 #3
Time does tell - eventally empedocles Jun 2020 #6
You are right. Steelrolled Jun 2020 #28
+1 KPN Jun 2020 #17
Everyone was expecting another Great Depression then Dopers_Greed Jun 2020 #16
Don't feel bad. Steelrolled Jun 2020 #20
If you are already highly invested, at140 Jun 2020 #35
Read this article. moreland01 Jun 2020 #34
Economic conditions are different now than in 1929 at140 Jun 2020 #36
Anti-protester fence futures soaring soothsayer Jun 2020 #4
MIghty convenient. Peregrine Took Jun 2020 #5
I am not a short, or even itermediate term market predictor, however, empedocles Jun 2020 #8
Not just convenient. How can the job estimates be off by 11 million? I don't get it. KPN Jun 2020 #18
Just one more... Smickey Jun 2020 #24
The Fed threw what at it? bucolic_frolic Jun 2020 #7
Trust but verify ouija Jun 2020 #9
Almost Ditto. The numbers are 11 million off of estimates (total unemployment that is). KPN Jun 2020 #23
The 'recovery hopes', and the burning of 'the shorts' have helped drive up empedocles Jun 2020 #10
but now "recovery" means no more stimulus so gold and silver go down bucolic_frolic Jun 2020 #19
Yep, 2008. And since October 2016 when Comey announced re-opening Hillary's email KPN Jun 2020 #25
Good move. I sold everything after the first big bounce following the bottom, but we KPN Jun 2020 #21
Lucky you! I can not sell before end of June. at140 Jun 2020 #37
Wow! Sounds like you need to find another fund/ KPN Jun 2020 #42
It is Fidelity and they will tag me for frequent trader at140 Jun 2020 #48
I think this is common with 401K accounts Steelrolled Jun 2020 #53
You are correct..nt at140 Jun 2020 #54
Two words.... Cooking Books ashredux Jun 2020 #11
Exactly. Plus, Covid-19 is spiking. This could put us back where we were in March. Auggie Jun 2020 #13
Yes....don't buy today...this is shorts being squeezed and false optimism.. ashredux Jun 2020 #22
Insider trading shows that exactly -- there's more insider selling than buying KPN Jun 2020 #43
Dr Fauci said this morning on CNBC interview that... at140 Jun 2020 #38
That can change in a heartbeat, though maybe not quite as fast as it did in March ... Auggie Jun 2020 #41
My own personal experience as a 79 Y.O. convinces me at140 Jun 2020 #49
Hands to the face -- I so agree! Auggie Jun 2020 #50
Why would you suspect that? The unemployment estimates were only off by 11 Million! KPN Jun 2020 #27
Wait until the public sector jobs are cut starting next month. OrlandoDem2 Jun 2020 #14
I would expect more short-term "furloughing" than job cuts if union contracts allow it. Steelrolled Jun 2020 #26
It's different so far. So is the Wall Street recovery different from what we are used to. There's KPN Jun 2020 #29
Something's fishy. How can the job/unemployment estimates be off by almost 11 million? KPN Jun 2020 #30
To your last question; No I don't. This is a short term prop-up for the rich. Half of U.S. has zero Evolve Dammit Jun 2020 #45
Unemployment is still higher than Great Recession, yet Dopers_Greed Jun 2020 #31
Biden will inherit a RECESSION Pantagruel Jun 2020 #32
Yeah and REAL unemployment numbers which could be 15-18% in Feb 2021 Bengus81 Jun 2020 #55
For those clutching their pearls and calling for the fainting couch Aviation Pro Jun 2020 #33
Only The Wall Street Crowd Would Be Cheering modrepub Jun 2020 #39
I'm gonna take some $$$ out of my mutual funds... Maxheader Jun 2020 #46
What was the unemployment rate prior to covid19? onetexan Jun 2020 #47
Like 4% - it was more-or-less an all-time low Steelrolled Jun 2020 #52
I've made so much money since Monday Polybius Jun 2020 #51
21.2 is the real unemployment number. Three card Monte in full effect. sarcasmo Jun 2020 #56

KPN

(15,585 posts)
12. Yeah, we need the economy to recover. I'm not sure it's going to actually happen in a way that
Fri Jun 5, 2020, 10:47 AM
Jun 2020

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.

at140

(6,110 posts)
2. Dammit my lack of courage cost me plenty
Fri Jun 5, 2020, 10:14 AM
Jun 2020

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.

 

Steelrolled

(2,022 posts)
28. You are right.
Fri Jun 5, 2020, 11:09 AM
Jun 2020

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)
16. Everyone was expecting another Great Depression then
Fri Jun 5, 2020, 10:50 AM
Jun 2020

The Fed has basically insured profits for wealthy investors

 

Steelrolled

(2,022 posts)
20. Don't feel bad.
Fri Jun 5, 2020, 10:54 AM
Jun 2020

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)
35. If you are already highly invested,
Fri Jun 5, 2020, 12:52 PM
Jun 2020

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)
34. Read this article.
Fri Jun 5, 2020, 11:39 AM
Jun 2020


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)
36. Economic conditions are different now than in 1929
Fri Jun 5, 2020, 12:55 PM
Jun 2020

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.

Peregrine Took

(7,408 posts)
5. MIghty convenient.
Fri Jun 5, 2020, 10:28 AM
Jun 2020

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)
8. I am not a short, or even itermediate term market predictor, however,
Fri Jun 5, 2020, 10:41 AM
Jun 2020

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.

bucolic_frolic

(42,656 posts)
7. The Fed threw what at it?
Fri Jun 5, 2020, 10:37 AM
Jun 2020

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.

KPN

(15,585 posts)
23. Almost Ditto. The numbers are 11 million off of estimates (total unemployment that is).
Fri Jun 5, 2020, 11:01 AM
Jun 2020

11 million? Seriously? I say "almost" because I'm frankly not sure about the "trust" part at all.

empedocles

(15,751 posts)
10. The 'recovery hopes', and the burning of 'the shorts' have helped drive up
Fri Jun 5, 2020, 10:42 AM
Jun 2020

gold and silver in the short term.

bucolic_frolic

(42,656 posts)
19. but now "recovery" means no more stimulus so gold and silver go down
Fri Jun 5, 2020, 10:53 AM
Jun 2020

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)
25. Yep, 2008. And since October 2016 when Comey announced re-opening Hillary's email
Fri Jun 5, 2020, 11:04 AM
Jun 2020

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)
21. Good move. I sold everything after the first big bounce following the bottom, but we
Fri Jun 5, 2020, 10:58 AM
Jun 2020

(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)
37. Lucky you! I can not sell before end of June.
Fri Jun 5, 2020, 12:58 PM
Jun 2020

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)
42. Wow! Sounds like you need to find another fund/
Fri Jun 5, 2020, 02:18 PM
Jun 2020

I’ve never heard of a 30 day hold. I’ve heard of 30-60 day waiting periods befor you can buy back in to a fund, but not a 30 day hold. What’s the penalty if you just withdrew to cash or rolled the account over into another fund/instrument?

at140

(6,110 posts)
48. It is Fidelity and they will tag me for frequent trader
Fri Jun 5, 2020, 03:46 PM
Jun 2020

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)
53. I think this is common with 401K accounts
Fri Jun 5, 2020, 06:18 PM
Jun 2020

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.

ashredux

(2,593 posts)
22. Yes....don't buy today...this is shorts being squeezed and false optimism..
Fri Jun 5, 2020, 10:59 AM
Jun 2020

This “rally” will fizzle quickly

KPN

(15,585 posts)
43. Insider trading shows that exactly -- there's more insider selling than buying
Fri Jun 5, 2020, 02:20 PM
Jun 2020

going on over the last month.

at140

(6,110 posts)
38. Dr Fauci said this morning on CNBC interview that...
Fri Jun 5, 2020, 01:00 PM
Jun 2020

overall the trend of new infections and death is down, but there are pockets in the country with higher rates.

Auggie

(31,059 posts)
41. That can change in a heartbeat, though maybe not quite as fast as it did in March ...
Fri Jun 5, 2020, 01:45 PM
Jun 2020

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)
49. My own personal experience as a 79 Y.O. convinces me
Fri Jun 5, 2020, 03:51 PM
Jun 2020

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.

KPN

(15,585 posts)
27. Why would you suspect that? The unemployment estimates were only off by 11 Million!
Fri Jun 5, 2020, 11:06 AM
Jun 2020

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)
14. Wait until the public sector jobs are cut starting next month.
Fri Jun 5, 2020, 10:49 AM
Jun 2020

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)
26. I would expect more short-term "furloughing" than job cuts if union contracts allow it.
Fri Jun 5, 2020, 11:05 AM
Jun 2020

This is a different kind of recession than what we are used to.

KPN

(15,585 posts)
29. It's different so far. So is the Wall Street recovery different from what we are used to. There's
Fri Jun 5, 2020, 11:12 AM
Jun 2020

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)
30. Something's fishy. How can the job/unemployment estimates be off by almost 11 million?
Fri Jun 5, 2020, 11:15 AM
Jun 2020

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)
45. To your last question; No I don't. This is a short term prop-up for the rich. Half of U.S. has zero
Fri Jun 5, 2020, 02:39 PM
Jun 2020

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)
31. Unemployment is still higher than Great Recession, yet
Fri Jun 5, 2020, 11:15 AM
Jun 2020

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)
32. Biden will inherit a RECESSION
Fri Jun 5, 2020, 11:20 AM
Jun 2020

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)
55. Yeah and REAL unemployment numbers which could be 15-18% in Feb 2021
Fri Jun 5, 2020, 06:31 PM
Jun 2020

All the FAKE unemployment numbers will end when Trump is gone.

Aviation Pro

(12,052 posts)
33. For those clutching their pearls and calling for the fainting couch
Fri Jun 5, 2020, 11:26 AM
Jun 2020

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)
39. Only The Wall Street Crowd Would Be Cheering
Fri Jun 5, 2020, 01:15 PM
Jun 2020

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.

Polybius

(15,235 posts)
51. I've made so much money since Monday
Fri Jun 5, 2020, 05:28 PM
Jun 2020

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%.

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