Even with the highest unemployment rate since the Great Depression the stock market continues to claw it's way higher. Is the worst behind us?
The Labor Department released its jobs report Friday morning, showing that a record 20.5 million jobs were lost In April and that the unemployment rate jumped to 14.7% from just 4.4%. However, those levels were lower than what was expected by most economists who were expecting a loss of 21.5 million jobs and an unemployment rate of 16%.
That marks the highest unemployment rate since the US Bureau of Labor Statistics started tracking the monthly data in 1948, and it's on par with levels of joblessness not seen since the Great Depression in the 1930s, for which the BLS has compiled annual estimates.
But the stock market seems to take solace in the fact that most of these layoffs are seen as temporary and that moving forward, most of the out of work people will resume their jobs as the economy reopens. With the recent market action in mind, is the worst behind us?
On a weekly level, the S&P 500 will post a weekly gain of +3%, and it's the first weekly gain in 3 weeks. The DOW will gain +1.9%, and the NASDAQ is the standout index with an increase of
As for the other markets that we watch, the US dollar will post a weekly gain of +1% and trying to erase last week's loss of -1.6. It's still trading close to the 100 level.
Gold is trying to continue its recent pattern of flip-flopping weekly gains and losses buy posting a small weekly gain +.3 as it stands. But it's is close to a potential breakout to record levels. Check out INO.com contributor Aibek Burabayev's recent article on Gold and Silver to see what I'm referring too.
Crude oil and Bitcoin are the darlings of the week as far as weekly gains go again this week. Crude oil will post a weekly increase of +22%, trading back above the $23 level fueled by optimism that the worst id behind us and all forms of travel will begin to resume as the US reopens for business.
Bitcoin will post it's fifth straight week of gains with a +10% gain inching ever closer to issuing a new green monthly Trade Triangle.
If you go by the market's recent action, you'd be led to believe that worst is behind us, but I'm not sure. Is The Worst Behind Us?
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 2,727.10
- Dow (INDEX:DJI): 22,941.88
- NASDAQ (NASDAQ:COMP): 8,215.69
- U.S. Dollar (ICE:DX): 100.86
- Gold (NYMEX:GC.M20): 1,692.30
- Crude Oil (NYMEX:CL.M20): 23.26
- Bitcoin (BITCOIN:BITSTAMPUSD): 10,500.50