Author Archives: Shah Gilani
Better Jobs Numbers Aren’t That Good: Market’s Will Rise Anyway
This morning the Bureau of Labor Statistics released July payroll numbers. They weren’t even as good as the headline 1.8 million workers added announcement, but that’s another story, which I’ll get to.
The numbers, which all beat consensus estimates, making them appear better, weren’t that good at all.
But that’s not going to stop equity markets from rallying.
Here’s the story behind the headline numbers and why equity markets are headed higher.
Rapidly Rising Markets and the Other Side of More Is Always Better Sooner
U.S. equity markets, as measured by the Nasdaq Composite, the S&P 500, and the Dow Jones Industrial Average, rocketed off their March coronavirus crisis lows and are headed higher.
The Nasdaq Composite’s already been making successive higher all-time highs and is poised to break out north of 11,000. The S&P 500’s only 87 points or 2.56% from its all-time highs, as of Tuesday’s close. And the venerable Dow, bringing up the rear, is 9.26% from its February 12, 2020 all-time highs, after plunging 11,354.92 points or 38.4% at its March 23, 2020 lows.
Stocks have bounced back, even the zombies parading around as healthy companies.
The markets have been roaring higher based on fulfilling the economic, and now market, postulate “more is always better sooner.”
But there are caveats to “more,” to “better,” to “sooner,” and especially to “always.”
I’ll touch on those later in the article – and I’ll have a special request for you as well…