Despite a historic downturn in employment, stocks managed to climb higher last week as investors were emboldened by the pace of economic re-openings, both here and abroad.
The Dow Jones Industrial Average gained 2.56%, while the Standard & Poor’s 500 advanced 3.50%. The Nasdaq Composite Index jumped 6.00% for the week. The MSCI EAFE Index, which tracks developed overseas stock markets, slipped 1.09%.1,2,3
Tech Stocks Power NASDAQ
Stocks posted back-to-back daily gains to end the week despite troubling employment data. Perhaps the headline of the week was that the technology-heavy NASDAQ Composite Index moved into positive territory year-to-date.4,5
A “Silver Lining” in the Jobs Report?
April’s employment report, released on Friday, saw a spike to 14.7% in the unemployment rate. As severe as these numbers may be, 88% of April’s newly unemployed characterized their job loss as temporary rather than permanent, as opposed to 47% of the newly unemployed in March who said their job loss was temporary.8,9
THIS WEEK: COMPANIES REPORTING EARNINGS
Source: Zacks, May 8, 2020
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The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.
The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indices from Europe, Australia, and Southeast Asia.
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1. The Wall Street Journal, May 8, 2020
2. The Wall Street Journal, May 8, 2020
3. The Wall Street Journal, May 8, 2020
4. The Wall Street Journal, May 8, 2020
5. The Wall Street Journal, May 8, 2020
6. CNBC, May 6, 2020
7. CNBC, May 6, 2020
8. The Wall Street Journal, May 8, 2020
9. The Wall Street Journal, May 8, 2020
Weekly Market Insights - May 12, 2020
May 13, 2020