Front Page|Our Services|Our Team|Client Center|Financial News|Events|Contact Us

Financial News

More Articles  Printer Friendly Version

 

Why Did Stocks Close At A Record-High After Disappointing Jobs Report?

4861 2

Stocks closed at a new all-time high today despite a bad surprise on the employment situation. What's driving stocks?

The combination of a weak bond market and Covid economic conditions are key pieces in today's puzzling investment news.

4861 3

Friday morning's Bureau of Labor Statistics' release that 245,000 jobs were gained in the U.S. in November, was down from 610,000 in October, and lower than the 457,500 new jobs that economists expected. That was a bad surprise.

4861 4

Friday morning's Bureau of Labor Statistics' release that 245,000 jobs were gained in the U.S. in November, was down from 610,000 in October, and lower than the 457,500 new jobs that economists expected. That was a bad surprise.

Interestingly, it triggered a spate of negative headlines. While major media outlets rang alarms bells, the stock market looked past it. Why?

4861 5

A revaluation of the stock market may be required due to the poor outlook for the other major asset class – bonds.

With long-term bond yields low, inflation at 1.2%, government aid is a cheap and practical way to solve the economic problems facing America in the Covid crisis.

4861 6

Money supply -- the cash held in savings, money markets and short-term instruments, has gone parabolic due to Covid relief payments and the lower-expense American lifestyle during the stay-at-home Covid period. With additional aid payments from the U.S. government expected to further boost M2 and, thus, savings of Americans, a market melt up is a risk.

Timing a market is impossible but understanding financial economic drivers of asset classes is not.

4861 7

The Standard & Poor's 500 stock index closed Friday at a new all time high of 3,699.12. The index gained +0.88% from Thursday, +1.65% from a week ago, and +49.24% from the March 23rd bear market low.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. It does not take into account your investment objectives, financial or tax situation, or particular needs. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. The material represents an assessment of financial, economic and tax law at a specific point in time and is not a guarantee of future results.


Email this article to a friend


Index
The Bad And Good Financial News This Week
Stocks Set New High Closing Price Amid Turbulence
Stocks Gained +16% in 2020; Wall Street Expects +7.6% In 2021
Holiday-Shortened Week Ends With Stocks Little Changed, Despite D.C. Drama
The Financial Economic Situation Now
Bull Market Has Broadened
Americans Sit On A Mountain Of Cash Amid Pandemic
For High-Income Earners And Families, Failing To Plan Is A High-Stakes Gamble
Stocks Break Record, But Smart Money Is Focused On Taxes
Wall Street Reacts To D.C With A 7% Weekly Gain
On Election Eve, Here's The Economic Outlook
Sizing Up Economic Prospects
Two Good Economic Surprises
October Surprise May Be The Economy
Economic Signs Are Fine Amid The Distractions

This article was written by a professional financial journalist for Vantage Point Financial Services, LLC and is not intended as legal or investment advice.

©2021 Advisor Products Inc. All Rights Reserved.
© 2021 Vantage Point Financial Services, LLC | 329 Regency Ridge Drive, , Centerville, OH 45459 | All rights reserved
P: 937-432-1111 | F: 937-432-1110 markblack@vantagepointadvisor.com |
Contact Us

Securities offered through First Allied Securities, Inc., A Registered Broker/Dealer, Member: FINRA / SIPC.
Advisory services are offered through First Allied Advisory Services, Inc., A Registered Investment Adviser.

This site is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. We suggest that you consult with your financial or tax advisor with regard to your individual situation. This site has been published in the United States for resident of the United States. Persons mentioned in this site may only transact business in states in which they have been properly registered or are exempt from registration.

Privacy Policy | ADV