Despite a historic downturn in employment, stocks managed to climb higher last week as investors were emboldened by the pace of economic re-openings, both here and abroad. The Dow Jones Industrial Average gained 2.56%, while the Standard & Poor’s 500 advanced 3.50%. The Nasdaq Composite Index jumped 6.00% for the week. The MSCI EAFE Index, which tracks developed overseas stock markets, slipped 1.09%.1,2,3 |
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Tech Stocks Power NASDAQ Stocks posted back-to-back daily gains to end the week despite troubling employment data. Perhaps the headline of the week was that the technology-heavy NASDAQ Composite Index moved into positive territory year-to-date.4,5 A “Silver Lining” in the Jobs Report? April’s employment report, released on Friday, saw a spike to 14.7% in the unemployment rate. As severe as these numbers may be, 88% of April’s newly unemployed characterized their job loss as temporary rather than permanent, as opposed to 47% of the newly unemployed in March who said their job loss was temporary.8,9 THIS WEEK: COMPANIES REPORTING EARNINGS Source: Zacks, May 8, 2020 |
1. The Wall Street Journal, May 8, 2020 2. The Wall Street Journal, May 8, 2020 3. The Wall Street Journal, May 8, 2020 4. The Wall Street Journal, May 8, 2020 5. The Wall Street Journal, May 8, 2020 6. CNBC, May 6, 2020 7. CNBC, May 6, 2020 8. The Wall Street Journal, May 8, 2020 9. The Wall Street Journal, May 8, 2020 |

May 12, 2020 - Jobs Down, Stocks Up
May 12, 2020