Did you think that a record drop in employment would cause inventories to drop? Not even close. the S&P 500 rose more than 1.5% on the stock market today, while the Nasdaq its highest level since February.
At this point, investors should not be surprised. We apparently rallied to all of the poor weekly jobless claims reports, and barely backed down from this week’s negative ADP jobs report or disappointing labor statistics from last month.
The long-awaited April employment report has finally arrived. Although the non-farm payroll figures came a little better than expected, it was still a massive drop. The economy suffered a loss of 20.5 million jobs against estimates for a loss of 22 million. The unemployment rate hit a whopping 14.7%, but was even better than the estimated 16%.
There is a silver lining here. Of the 20.5 million job losses, 17.8 million workers were on temporary leave. So, although there are a lot of unemployed people right now, there should be job losses in the short term. Once the economy starts to reopen, not everyone will find a job, but there should also be a labor market rebound.
The coming week
Last week, it was a mega-cap technology. This week, these are high-growth stocks. Despite the volatility, profits will continue.
We will hear Under protection (NASDAQ:AU), Cardinal Health (NYSE:CAH) and Marriott international (NASDAQ:TUE) Monday.
Later in the week we will hear Honda (NYSE:HMC), Wix (NASDAQ:WIX), Norwegian cruise (NYSE:NCLH), JD.com (NASDAQ:JD) and VFC Corp (NYSE:VFC), among others.
Stock market movers today
Request Disney (NYSE:DIS) is in full force, tickets for Shanghai Disneyland being sold out for its reopening. After stopping the coronavirus epidemic for three months, the park will reopen at 30% of its normal capacity – 24,000 people. The opening will involve security measures such as masks, temperature tests and social distancing.
Rosenblatt is optimistic about Disney as the company also begins to reopen some of its retail stores in Florida. Although the company is not yet opening these theme parks, it is a step in the right direction.
You’re here (NASDAQ:TSLA) plans to restart operations at Fremont today. The Fremont plant has been closed since March 23 due to the pandemic, and California governor Gavin Newsom has finally authorized certain manufacturers to resume operations.
With several other retailers, J.C. Penney (NYSE:JCP) is not that hot. The company is expected to file for bankruptcy next week. According to reports, J.C. Penney is closing about a quarter of its stores. As JCP emerged from its heyday for some time, stocks hit a new all-time low on Friday near 16 cents.
Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) has announced that most of its employees will continue to work from home until 2021. This could become standard practice over the next few months with several companies. Even if Facebook (NASDAQ:FB), the offices will eventually start to reopen, the company also said it would allow most of its employees to work from home until next year if they wish.
Bret Kenwell is the director and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell has long been DIS and GOOGL.