Published Every MondaySince 2007| Volume 754| May 10, 2021
So far YTD these many weeks were up (Bull), down (Bear), or draw (Bull/Bear) … Bulls (Markets UP) = 10… Bears (DOWN) = 06… and Draw = 02
The DOW is up 873 points for the week
The DOW was up +873 points or +2.6%, S&P 500 was up +41 or +1.0% and the NASDAQ -280 points or -2.0% for the week ending May 7th.
The NASDAQ continues to lose steam as the technology stocks continue to be under pressure. Experts believe that FAANG (Facebook, Apple, Amazon, Netflix, Google) and other popular technology stocks were priced too high, and are now just adjusting closer to the realistic valuation and price.
Oil was up +$1.3 or +2.1% to $64.82 per barrel.
April adds only +266,000 jobs versus the expectation of closer to 1,000,000
The U.S. Labor Department reported that in April +266K jobs were added. The unemployment rate for April was 6.1%. Since February of 2020 the US has lost about 10 million jobs! In comparison to 2019 where the US added 2.1 million, 2018 added 2.7 million, and 2017 added 2.06 million jobs. Since the 2009 and financial crisis close to 22 million jobs have been created.
Since February of 2020 job losses occurred in the Leisure and Hospitality industry which employs the most people and impacts restaurants, hotels, bars, travel, and related services.
The job participation rate improved from 61.5% to 61.7%. Pre-covid this number was over 63%. The participation is a percentage of 16-64 years olds that are working or seeking employment. Non-working Americans include the retired, stay home with kids, disabled, Seniors, College students AND those trying to find a job but have given up.
Typically 300,000 new jobs a month are needed to drop the unemployment rate, and 150,000 jobs to just keep up with the population growth.
During the last recession, due to a bad banking loan crisis, close to 8.7 million jobs were lost which were recovered but now with Covid-19 more jobs have been lost!
Sources: Multiple, Bloomberg, CNBC, CNN, Yahoo, Google, NY Times, BLS, US Government, CIA handbook,…Select other sources
US Covid-19 deaths have crossed unfortunate mark of 594K (+4K from last week). US Covid deaths > than US lives lost in WW I, II, Vietnam war, and 9-11 Combined!!
Global Covid cases ~158 million (+6M); Global deaths > 3.3 million;
US Covid cases = ~33million (~21% of world); US deaths ~ 594K (or ~18% of the world)
The richest nation on earth US has about 4.3% of the world population but it has lost 20% of the lives lost worldwide! Source: www.worldometers.info
In YTD 2020 Dow is up +13.6%, S&P500 is +12.7% and the NASDAQ is +6.7%
In 2020 Dow was up +7.2%, S&P500 is UP+16.3% and the NASDAQ is UP +43.6%
In 2019 DOW was up +22.3%, S&P500 up +28.9% and NASDAQ up +35.2%
In 2018 the DOW was down -6.7%, S&P500 down -7.0% and NASDAQ down -4.6%.
In 2017 the DOW was up 25.1%, S&P500 up 19.4% and NASDAQ up 28.2%