Confirming Recovery Is Under Way
Published Friday, August 7, 2020; 9:00 p.m. EST
(Friday, August 7, 2020; 9:00 p.m. EST) Confirming a recovery is under way and the recession is ending, the U.S. Labor Department reports 1.76 million net new jobs were created in July and the rate of unemployment dropped to 10.2%.
In addition, strong increases in the service and manufacturing sectors were reported by corporate purchasing managers, according to the Institute of Supply Management, and ISM's forward-looking sub-index measuring new-order activity surged in July.
Improvement in the job situation and corporate purchasing numbers had been expected but the gains were materially stronger than had been expected by economists.
08/07/2020 closing number: 3,351.28
The Covid-crisis recession and recovery are unprecedented in modern U.S. history, making precise predictions tenuous. But the job situation and corporate purchasing manager data have been better than expected for two months.
The Standard & Poor's 500 stock index closed Friday at 3,351.28, up six-tenths of 1% for the day, +2.42% from a week ago, and +39.86% than its March 23rd bear market low.
Stock prices have swung wildly since the crisis started in March. Drops of as much as7% in one day have occurred in this period and volatility is to be expected in the months ahead.
For tax purposes, this is good time to consider certain strategies, including conversion to a Roth IRA from a traditional IRA, or gifting assets to children and grandchildren.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market-value weighted index with each stock's weight proportionate to its market value. Index returns do not include fees or expenses. Investing involves risk, including the loss of principal, and past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.
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 situation, or particular needs. Product suitability must be independently determined for each individual investor.
This material represents an assessment of the market and economic environment 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.
This article was written by a professional financial journalist for Sterling Financial Group and is not intended as legal or investment advice.
- Strong Jobs Report Caps A Week For The Record Books
- Why Stocks Rose Friday Despite A Rise In Inflation In April
- Weekly Investor Update
- The Confluence Of Bad News For Recent Retirees And Those About To Retire
- Good And Bad News This Week For Investors
- Getting There: The Economic Balancing Act Progressed In March
- Stocks Gained Friday But Closed Fractionally Lower For The Week
- Good News On Inflation But A Recession May Be Hard To Avoid
- Analysis: The First Data Since The Banking Crisis Erupted In March
- Stocks Gained 7% First Quarter And Other Good Financial News
- Despite Bank Fears And A Fed Hike, Stocks Climbed For The Week
- Bank Panic And Strong 1Q '23 Economic Growth
- Mixed Economic Signals And A Bank Failure
- Service Sector Remained Strong In February, Soothing Investors For Now
- Inflation Rose In January, Indicating Tight Monetary Policy May Continue Into 2024
- Amid Divergent Data, Here's What To Know
- Optimistic Again, Will A Fed Algorithm Be Right Again?
- The Bipolar Economy Of 2023
- On Wednesday, We’ll Know If The Federal Reserve Will End Inflation By Causing A Recession
- Technology Drove S&P 500 1.9% Higher Friday, But Look At Tech's Terrible 2022 Loss
- Here What To Know To Invest Wisely
- Prudence Requires Positioning Portfolios For An Economic Expansion