The Week on Wall Street
A positive jobs report sent stocks soaring last Friday,
capping a solid week as evidence of a global economic recovery outweighed concerns over civil unrest
and tensions with China.
The Dow Jones Industrial Average jumped 6.81%, while the Standard
& Poor's 500 advanced 4.91%. The tech-heavy Nasdaq Composite Index lagged, climbing 3.42%. The
MSCI EAFE Index, which tracks developed stock markets overseas, gained 5.52%.[1][2][3]
Stocks March Higher
Despite multiple headwinds, stocks rode a wave of optimism
over economic recovery and were encouraged by signs that a feared spike in COVID-19 had not
occurred.
Firming oil prices and positive global manufacturing data helped boost stocks
during the week. The market continued to be led by industry sectors that were most battered in the
March decline, as price advances slowed in growth-oriented stocks, primarily technology
names.
After a pause on Thursday, stocks surged on Friday when a jobs report surprisingly
showed 2.5 million new jobs in May, with the unemployment rate falling to 13.3%. Wall Street expected
a jobs decline of over 8 million and an unemployment rate of
19.5%.[4][5]
A Wall of Worry
While the markets continued
to move higher last week, many investors are concerned that the recovery may be hindered by simmering
tensions with China and the civil unrest that erupted last week.
China has been a
longstanding source of market worry, but the civil unrest introduces a new challenge. For now, the
market appears to have shrugged off these concerns.
Final
Thought
This past Wednesday marked the best 50-day gain for the S&P 500 in the
index's history. During a period that approximates the lifespan of a mosquito, stock market sentiment
has swung from near-absolute despair in late March to positively
bullish.[6]
Often, the most impactful lessons in life tend to be those most
recently learned. If the last three months have offered investors any lesson, it may be that trying to
time the market is a challenging proposition.
THIS WEEK: KEY ECONOMIC
DATA
Wednesday: Consumer Price Index (CPI). Federal Open Market
Committee (FOMC) Meeting Announcement. Federal Reserve Chair Press
Conference.
Thursday: Jobless Claims.
Source: Econoday, June 5,
2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key
economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve
officials. The content is developed from sources believed to be providing accurate information. The
forecasts or forward-looking statements are based on assumptions and may not materialize. The
forecasts also are subject to revision.
THIS WEEK: COMPANIES REPORTING
EARNINGS
Monday: Coupa Software (COUP).
Tuesday: Chewy (CHWY).
Thursday:
Lululemon (LULU).
Source: Zacks, June 5, 2020
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- The Wall Street Journal, June 5, 2020
- The Wall Street Journal, June 5, 2020
- The Wall Street Journal, June 5, 2020
- CNBC, June 5, 2020
- CNBC, June 5, 2020
- The Wall Street Journal, June 4, 2020