Actions reach new records, despite report of severe work

Actions reach new records, despite report of severe work

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Because? The weak numbers highlight the need for more stimulus from Washington.

The Dow, S&P 500 and Nasdaq rose earlier in the day – although the Dow gave up on its gains later – as investors appear to be betting that more help will come soon. Joe Biden will be sworn in in less than two weeks and Democrats now control the Senate as well as the House after the second round of elections in Georgia.

“The ongoing battle against the pandemic is putting pressure on the real economy once again,” said Charlie Ripley, senior investment strategist at Allianz Investment Management, in an email to CNN Business, “and despite what financial markets are signaling, the job market is indicating that there is still a way to go on the economic path to recovery. ”

“Congress’ ability to provide additional tax support has increased and today’s employment report simply invites them to do so,” added Ripley.

Hopes are also growing for a recovery in the economy, as well as corporate earnings later this year, as more people are likely to receive one of the Covid-19 vaccines from Pfizer (PFE) and BioNTech (BNTX) or Modern (MRNA).

“Investors are already looking into this temporary period of economic weakness and are instead focusing on a brighter perspective, where fiscal spending, monetary stimulus and the mass distribution of COVID-19 vaccines ensure that the economy of USA quickly return to its pre-pandemic path, “said Seema Shah, chief strategist at Principal Global Investors, in a report on Friday.

Hopes for economic recovery are a likely reason why bond yields are also recovering. The yield of the 10-year US Treasury recently rose above 1% for the first time since March and has risen even further after the employment report.

“The weakness in the number of jobs today can be transient,” said Jim Caron, global fixed income portfolio manager at Morgan Stanley Investment Management, in an interview with CNN Business.

“These data were not good, but investors are looking beyond recent volatility, to better days ahead,” added Caron. He also noted that investors realize that the Federal Reserve is likely to keep interest rates close to zero for a few more years – perhaps until 2024.

There are other signs of economic improvement recently, despite the fragility of jobs.

ISM’s latest manufacturing report showed a continued recovery for many American industrial sectors, said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Company.

Can anything stop Tesla and Elon Musk?

In other market news, Tesla (TSLA) The shares continued their electrifying run, rising another 4% on Friday. The carmaker Elon Musk shot more than 20% as early as 2021. The company is worth more than $ 800 billion, exceeding the market value of Facebook (FB).
Tesla is now the fifth most valuable company in the S&P 500, behind only Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Google owner Alphabet (GOOGL).
Elon Musk overtakes Jeff Bezos to become the richest person in the world
The shares of Social Capital Hedosophia Holdings Corp. V, a company called a blank check special-purpose acquisition, rose about 10% on Friday after shooting nearly 60% on Thursday with news that online lending company SoFi plans to merge with it to go public.

The deal values ​​SoFi at nearly $ 8.7 billion.

AND bitcoin (XBT) continued to grind his way higher as well. The cryptocurrency, which reached $ 40,000 for the first time on Thursday, is now worth almost $ 42,000.

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