Shares hit new highs despite a tough job ratio

by

Why? Weak numbers highlight the need for more stimulus from Washington.

The Dow, S&P 500 and Nasdaq started trading early – although Dow later gave up its gains – as investors bet they would bet more help would come. Joe Biden will be inaugurated in less than two weeks, and Democrats now control the Senate and House after this week’s Georgia election.

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

“Congress’ ability to provide additional tax support has increased, and today’s employment report is simply attracting its attention,” Ripley added.

Hopes are also rising for a recovery in the economy, as well as for corporate gains later this year, as more people will receive one of the Covid-19 vaccines from Pfizer (FE) and BioNTech (BNTX) or Modern (mRNA).

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

Hopes for economic recovery are a likely reason for bond yields to return as well. The yield on the 10-year US Treasury has recently risen more than 1% for the first time since March and has risen after the job ratio.

“This job weakness today can be temporary,” said Jim Caron, global fixed income portfolio manager at Morgan Stanley Investment Management, in an interview with CNN Business.

“These data have not been good, but investors are looking at recent volatility towards brighter days,” Caron added. He also mentioned that investors realize that the Federal Reserve may keep interest rates close to zero for a few more years – maybe until 2024.

Lately, there are other signs of economic improvement, despite the weakness of jobs.

The latest ISM production report showed a steady recovery for many US industries, said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Company.

Can something stop Tesla and Elon Musk?

In other market news, adze (TSLA) shares continued their electrifying run, up another 4% on Friday. Automobile company Elon Musk has grown by more than 20% as early as 2021. The company is worth more than $ 800 billion, surpassing the market value of Facebook (FB).
Tesla is now the fifth most valuable company in the S&P 500, just behind Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and the owner of Google Alphabet (GOOGL).
Elon Musk surpasses Jeff Bezos to become the richest person in the world
Shares of share capital Hedosophia Holdings Corp. V, a so-called special-purpose purchasing company, rose about 10 percent on Friday, after rising nearly 60 percent on Thursday on news that online lending firm SoFi plans to merge with it to go public.

The transaction values ​​SoFi at almost $ 8.7 billion.

And Bitcoin (XBT) he continued to grind his way even higher. The cryptocurrency, which surpassed $ 40,000 for the first time on Thursday, is now worth nearly $ 42,000.

.Source