Stocks jump despite Great Depression-like U.S. job losses

After data on historic U.S. job losses due to the COVID-19 crisis showed they were slightly fewer than feared, major U.S. stock indexes jumped on Friday and logged solid gains for the week.

Stocks jump despite Great Depression-like U.S. job lossesLewis Krauskopf for Reuters:

All 11 S&P 500 sectors were positive… A 2.4% gain in Apple shares also lifted the indexes after the iPhone maker said it will reopen a handful of U.S. stores starting next week.

The U.S. economy lost 20.5 million jobs in April, the Labor Department reported. Economists polled by Reuters had forecast payrolls diving by 22 million, but the decline still marked the steepest plunge since the Great Depression.

The Dow Jones Industrial Average rose 455.43 points, or 1.91%, to 24,331.32, the S&P 500 gained 48.61 points, or 1.69%, to 2,929.8 and the Nasdaq Composite added 141.66 points, or 1.58%, to 9,121.32. The Nasdaq posted its fifth straight daily gain, its longest such streak since December 2019.

The Cboe Volatility Index, known as Wall Street’s fear gauge, fell 3.46 points to 27.98, its first close below 30 since Feb. 26.

Stocks have staged a sharp rebound since late March from the coronavirus-fueled sell-off, helped by massive monetary and fiscal stimulus. The tech-heavy Nasdaq on Thursday erased its 2020 declines and turned positive for the year.

MacDailyNews Take: Hopefully, the U.S. job losses are temporary! The stock market trades on the future, not the present.

39 Comments

  1. Which is why “the market” is not “the economy”. Neither is the racetrack, and if it’s a Trump Casino somehow the “house” loses. Mr. Bialystok was on to something…

    1. If you watch interviews about him setting up the casinos, it becomes clear he wanted a Vegas like event venue more than a casino. He disregarded a lot of advice from investors who own casinos, because it would interfere with the showie boxer entrances. The result being casinos that weren’t very profitable in good times, and failed in bad. That’s why he built those businesses with investors money.

      1. He eventually walked away with about $42 million in profit, while his investors lost 80% of the money they put in. It’s not like the voters in 2016 didn’t know what they were getting.

        1. You’re right. The election was between Trump and an evil criminal. Thankfully, the Dems were stupid enough to nominate her and evil lost for a change. Now Dems hav me chosen a dementia patient. You can’t make this up if you tried. Lolol

            1. CitizenX,

              Let them keep ranting about how perfectly divine it is for the President of the United States to have gathered all the reins of power in a single pair of hands without any checks or balances from Congress, an independent judiciary, nonpartisan Civil and Foreign Services, autonomous auditors and Inspectors General, a free press, or any other obstacles to untrammeled power.

              Then sit back and watch them backpedal when the misuse and non-use of all that power has left the coronavirus to run wild through the country and the White House, putting the President and Vice-President in the hospital, and giving all that power to the next person in the line of succession.

          1. Absolutely correct, Dd. 👍🏻

            Hillary hopefully will be tried — now that we FINALLY have an EQUAL JUSTICE FOR ALL Justice Department — looking into the related Hillary campaign finances regarding the Steele dossier, FISA warrants, Clinton Foundation with Russia ties, illegal e-mail servers and mishandling of classified government documents. Back burner investigation for now, but the reckoning is coming.

            Currently and more pressing we have a Dementia Democrat and a Democrat Media backing the Democrat KING of Washington SWAMP politicians, with sexual harassment baggage of his own for president, drum roll please… Bumbling Buffoon Biden! 🤪

            TxUser is right. We knew EXACTLY what we voted for in 2016. ENABLER greedy crooked Clinton with a sexual predator husband or the populist successful worldwide businessman with ZERO Swamp or prior political poison experience.

            The Populist Presidential choice was confirmed and an UNPRECEDENTED remarkable turnaround of the economy SHATTERING several all time economic records you won’t find broadcast on CNN or in the pages of the New York Times. Regardless of the shameless BIASED MEDIA, they cannot change facts. The only tool at their disposal is ignore, hide and deflect denigrate. That is User’s modus operandi.

            No matter, the media and the Democrats cannot simply wish REALITY into the cornfield.

            President Donald J. Trump is the decisive superlative choice to lead us out of the Covid crisis and return to economic prosperity in 2020 and BEYOND!… 👍🏻🇺🇸🦅

            1. TxUser,

              With every post you prove that liberal stupidity and gullibility are unrelenting. You have not be given the Libturd moniker, you EARNED IT.

        2. “It’s not like the voters in 2016 didn’t know what they were getting.”

          Yes, I totally agree with you.

          The choice was crystal clear a crooked political insider with the help of her cronies and DNC stacked the deck to get the nomination over Bernie.

          Contrast that with a well known handsome successful businessman with ZERO swamp experience transformed into a remarkable populist FIRST TIME candidate appealing to the masses.

          The FAKE media and DOUBLE FAKE polls could not stop the populist juggernaut back in 2016 and will not stop it in 2020.

          Please join me in saying Trump-Pence 2020!… 🇺🇸

      1. That’s seldom true in America but catchy for the simple minded.
        (not that you care, but the richest bankers, businesses leaders and politicians are all Democrats)

          1. Even if I had I would still have enough sense to know that saying is bullshit.

            The poor seldom get poorer, if they are really even poor to begin with.
            This has been the trend in America since WWII.
            Yes, of course some individuals get poorer through bad luck or choices but the opportunities are there.

            Oh wait, sorry. I forgot this is an official party line of Democrats every four years to scare up some votes from the lower class and so therefor many people believe that yes, indeed 2+2=5….

            1. Poor stupid and proud of it, the stock market is the most public example of the gap between rich and poor (middle class) there is, the recent SBA loan program where all the money when to insiders before the doors even opened across the country to the small local business that really needed the money is the other.

              Party has nothing to do with it, more than half the country already thinks they will move up to Overlord/Pinkerton if they can just adopt their masters view of the world even they get no benefit, the southeastern part of the USA is best example.

              The actual poor have been run over by the bus a long time ago that ship has sailed on, it’s now the (poor) middle class turn to be under the bus…you must be stupid and slow….

            2. CitX-
              still the master of saying nothing.

              Danox-
              Sorry, didn’t know you had moved the goalpost. So now the middle-class are the poor? Is this because the ‘poor’ are actually doing so much better now than 50 years ago?

              Maybe in a few more years millionaires will be the poor, simply because they aren’t billionaires? When will THAT bus-ship sail??

              Your argument is simply conjecture, ignorance and propaganda. Just because rich get richer doesn’t meant the poor are getting poorer. Actually the inverse is closer to reality (over time) in America.

              Also one thing you haven’t accounted for is that neither class is static, they are both dynamic with people moving in and out of each one. This can actually be perceived as many rich getting POORER while the poorest (with government assistance) actually do better percentage wise.

              I better stop there. This is already too much for you to absorb.

              And I am sure CitX is already trying to piece together three more words to make his ultimate statement….

            3. In 1965, the typical CEO of a major American corporation made about 15 to 20 times the salary of a line worker. For example, the President of General Electric made $250,000 and starting white-collar folks about $15,600.

              Today, the gap is an average 278 times. Starting salaries have barely grown if adjusted for inflation since 1971 or thereabouts, while executive compensation has ballooned. The next President of GE made $400 million in one year.

              It isn’t absolute poverty that drives discontent, but the perception of unjust disparities. The richest 400 individuals in America control as much wealth as the entire African-American population plus a quarter of the Latinos.

              Can you seriously claim that is based on pure merit? The difference from 1965 has been driven by the pardon-worthy principle that Greed is Good. The wealthiest people in America aren’t industrialists or entrepreneurs. They are money managers of one sort or another. The top thirty hedge-fund managers make over $200 million a year, while the median US personal income is $31,099.

            4. Way to join a discussion TXer and make absolutely no sense.
              The issue is whether poor are getting poorer as a result of rich getting richer.

              I know you are a professional arguer and love to jump in like a stripper at a keg party but other than prove rich get richer you did nothing.

            5. Relative to the rich, the poor ARE getting poorer. The average man used to earn about 1/20 of a super-rich man’s salary while they now make 1/278; the gap to the poorest has grown as much. The median American salary may not be going down, since it is by definition the halfway point in the population and that has roughly kept pace with inflation.

              However, the mean personal income (the arithmetic average calculated by adding everybody’s income together and dividing by the population) has been rising spectacularly faster as fewer and fewer people make more and more money. If you were to define “poor” in terms of the mean, rather than the median, the overwhelming majority of us would be poor, and getting poorer all the time.

              The French Revolution was sparked by income disparities, not by an increase in absolute destitution. America as a country has grown enormously wealthier since the 1960s, but most individual Americans have not.

            6. TXer-
              Being ‘poor’ is not relative to those who are rich.

              It just doesn’t work that way except in the mind of a liberal elite who thinks everyone should be equal in value (sorry, we’re not. In the eyes of the law and God, yes. In the real-world market place, no. If that were true you would have been paid minimum wage for your work and someone with no experience could’ve replaced you because, well they are just as equal…)

              Poor is relative to BASIC NECESSITIES TO SURVIVE.
              Can you afford shelter?
              Can you afford food?
              Can you afford electricity and/or gas?
              Can you afford medical care?

              These are the qualifications of being poor, not how much your neighbor has earned.
              NOTE: these are not RIGHTS they are NEEDS
              However, if relief is offered by the government, you have a right to apply for them if you meet certain criteria.

              You’ve lived in Liberal Elitism so long you have no clue how the real world works.

            1. All cities are left leaning because the stupid and gullible flock to cities. The founding fathers knew that, which is why they created the electoral college. They wanted to make sure the stupidly of the large groups in the cites do not outvote the rest of the country.

            2. The states with major urban areas pay most of the federal taxes. The rural states could not provide adequate services without various federal subsidies. The real “welfare queens” these days don’t drive Cadillacs. They drive pickup trucks.

            3. So are their tax rates. So why are some of these states looking to federally taxpayer bailouts for incompetence in managing state budgets?…

            4. “The states with major urban areas pay most of the federal taxes. The rural states could not provide adequate services without various federal subsidies. The real “welfare queens” these days don’t drive Cadillacs. They drive pickup trucks.’

              What utter BS.

              The rural states would do fine without the cities. The cities would be in chaos in less than a week with the food produced in the “rural’ states.

              Every major city is run by Demonrats. Every major city is a financial cesspool. And, let’s not forget the corruption.

              And, no it’s not a coincidence.

            5. Response to TxUser May 10 at 12:03 am

              “The states with major urban areas pay most of the federal taxes.”

              Population concentrations of high wage earners to offset the high cost of living including HIGH TAXES are found in cities worldwide. Nothing new and no breaking news here.

              “The rural states could not provide adequate services without various federal subsidies.”

              USER stereotyping 🐂💩!

              The rural states often work harder than the office suites keyboard jockeys on their iPhones all day jump started on pricey Starbucks and pay every penny of their fair share and adequately provide for their citizens. Your blanket statement and mean stereotyping only reveals your UGLY TRUE LIBERAL COLORS.

              “The real “welfare queens” these days don’t drive Cadillacs. They drive pickup trucks.”

              Wow!!! 😱 I’m amazed and taken aback at your clueless and callous UGLY STEREOTYPING! I always thought TRUE liberals were high and mighty, but fair minded and above board and set examples for us all. By your own words, your methods are equivalent with the KKK. 😡

              The true story is the blue states with the most money and the highest wage earners also pay the highest taxes. And now they are in the forefront asking the federal government for taxpayer BAILOUT dollars to finance their clueless mismanagement of state budgets kowtowing to overpaid teachers and labor unions.

              Back in my home state of Pennsylvania they have the HIGHEST gas tax in the nation and the WORST roads. The majority of gas tax funds go not to fix the roads as intended, but to subsidize blue city Philadelphia mass transit first championed by Ed Rendell. I can think of DOZENS of Blue State examples of budget mismanagement, but one will suffice for now.

              President Trump with VP Mike Pence by his side unequivocally said NO to blue state bailouts. You gotta love strong decisive leadership contrasted with the indecisive mealy mouth teaching moment professor of the last eight years.

              I drove a pickup years ago with a well polished gun rack same as my brother and friends present day — what’s your problem arrogant city slicker? Let’s talk in the parking lot, I’ll show you my rare priceless double barrel with beautifully engraved stock.

              Too, too many ugly stereotypes by my accounting, NOTED. You elitist condescending A-Hole!…🖕🏼

      2. Part of the reason for the wealth gap is our own “need” for cheap goods. Manufacturing in China especially and importing labor, both have the effect of reducing wages for the citizenry and increasing profits for those investing. The latter sounds good to most, but in the end, it increases the chasm between the classes.

        On the other hand, there will always be those called “poor.” Someone once proclaimed, “the poor will always be with you.”

  2. The Market, as depicted by the Dow 30, has been in a trading range of roughly 23,000-24,000 for some time now.
    Markets are not a trailing indicator. As sentiment improves, so will the markets. AAPL, others, getting on-stream will help. Many out-of-work people are on temporary furlough and this will probably play into investors’ thoughts.

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