USA stocks end mixed following disappointing data

Daniel Fowler
June 6, 2020

USA stocks ripped higher Friday after expectations-defying data showed the country added 2.5 million jobs in May, boosting investors' bets on a nascent, if likely uneven economic recovery.

The Dow Jones Industrial Average rose 829.16 points, or 3.15 percent, to close at 27,110.98.

The benchmark S&P 500 is now less than 1% down on the year after crashing more than 32% from that level by late March, and is about 6% below its record high.

Friday's rally put the S&P 500 down just 1.1% for 2020.

Analysts at the firm added that the US rally could also be in danger of interruption should negotiations over another round of stimulus bills fall apart, or tensions between the USA and China escalate again.

Airlines, among the hardest hit by the coronavirus crisis, soared, with the ARCA Airlines index jumping 5.7%.

Today's report from the Labor Department is likely to show the U.S. unemployment rate shooting up to nearly 20% in May, a new post-World War II record, but investors have so far shrugged off dire data on hopes that an easing of Covid-19-led lockdowns would revive business activity.

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The Nasdaq also breached its all-time closing high reached in February, but pared its gains to end the session a bit below it.

The S&P 500 posted 26 new 52-week highs and no new lows; the Nasdaq Composite recorded 89 new highs and three new lows. Economists polled by Reuters had forecast the unemployment rate jumping to 19.8% in May and payrolls falling by 8 million jobs.

Economic data showed the number of Americans filing for unemployment benefits dipped below 2 million for the first time since mid-March, and plummeting global commerce resulted in a net widening of the USA trade gap.

"We were pretty overvalued going into this week", said Chris Zaccarelli, chief investment officer, Independent Advisor Alliance, Charlotte, NC.

But for many on Wall Street, the jobs report appeared to at least temporarily validate the stock market's rally over the past few months. The company's revenue for the first quarter of 2021 fiscal year increased by 50% to $201,650 million Experts predicted $186,2 million Adjusted net loss of Slack in the last quarter was 2 cents per share against 23 cents a year earlier.

The euro slipped 0.41% at $1.1288 while the pound sterling gained 0.56% at $1.2664. The Shanghai Composite rose 0.4%; Hong Kong's Hang Seng rose 1.66%; while Japan's Nikkei-225 gained 0.74%.

The economic recovery taking place in some parts of the world is still in its early stages and hinges on governments not having to reimpose lockdowns should there be another spike in coronavirus cases.

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