The Dow Jones soared on Friday as a massive beat in the jobs numbers had Donald Trump calling the U.S. economy a rocket ship.
The Dow Jones exploded 3.25% higher on Friday, as an extraordinary jobs report caught Wall Street off guard.
The unemployment rate narrowed, shocking an already optimistic Dow, though many economists are questioning Trump’s boast that the U.S. economy is really the “rocket ship” he claims.
All three of the major U.S. stock market indices reveled in risk-on to close the week.
The Nasdaq hit a new all-time high above 9,800, the S&P 500 rose 2.69%, and the Dow Jones soared 853.63 points (+3.25%) to 27,135.45.
With expectations of the unemployment rate spiking to 19.7%, the stock market gasped at a 13% reading that tightened from last month’s 14% figure. Non-farm payrolls grew by more than 2.5 million against expectations of an 8 million drop, catching bears on the backfoot.
Always one to capitalize on some positive developments in the economy, U.S. President Donald Trump held a press conference to talk up the employment numbers and ensure maximum exposure to these jaw-dropping figures.
Rejecting the idea that it’s absurd to expect a V-shaped economic rebound, Trump said the recovery will look more like a “rocket ship.”
Watch his full comments below:
While Wall Street hopes he is right, many respected analysts and economists are proceeding as though precisely the opposite is true.
Yes, things were better than expected, but who could have predicted 13% unemployment could be construed as a “positive” in the United States?
ING’s James Knightley was one of these cautious voices, and his report on today’s jobs data poured cold water on the all-clear that the White House announced today.
Given the downturn in global economic activity, many manufacturing and professional service firms may also not need as many staff as they face up to the new economic environment of weaker corporate profits and higher debt levels.
We also have to remember that even after today’s great numbers, US employment is still 19.55mn lower than it was in February. We still have a long way to go…
While many will question the validity of the statistics, it is worth noting that Canada also reported a positive employment change and a drop in unemployment. Given the close ties between the two economies, this does provide evidence that the U.S. numbers are authentic.
On a beautiful day for the Dow 30, Boeing rose an incredible 12% after an already stunning week.
The performance of airlines is the critical fundamental for BA, which has tracked the breakout performances in stocks like American Airlines.
One of the Dow Jones’ most heavily weighted stocks, Apple, continues to trade with an incredible sturdiness, rising 2.4% above $330.
Oil supermajor Exxon Mobil rallied 8% on the day as crude extended its gains to the brink of $40 per barrel.
The only DJIA stock in the red for most of the day was defensive play Walmart, which eased 0.7% lower.
Last modified: September 23, 2020 1:58 PM