Wall street keep seeing the light at the end of the tunnel. The main US indices have prolonged their historic rebound from the lows of March (Dow Jones: + 2.05%; S&P 500: + 1.36%; Nasdaq: + 0.78%), investors are still discounting more the reopening of the economies than the impact of Covid-19 and the riots after the death of George Floyd. To this has been added the good and unexpected employment data published by the ADP consultancy. To highlight, the Nasdaq it has been placed at 1% of its historical maximum of February, located at 9,838 points. And the S&P 500 It is already trading at 3,130 points, close to its record of 3,393 integers.
The US lost “only” 2.7 million private jobs in May, according to the ADP consultancy. This figure contrasts with the nine million jobs that the consensus of analysts expected the coronavirus to destroy in the fifth month of the year.
Before the official employment data published this Friday, the world’s largest economy comes from record the worst data in history in April since the consultant’s report is prepared.
For the weekly unemployment data to be published this Thursday, the consensus anticipates the loss of 1.8 million jobs. And for the official data for May, the destruction of 8 million jobs, after the 20 million lost in April.
“Despite the various problems, such as the riots, the Chinese retaliation, the pandemic … the stock markets are still focused on one thing: the reopening of the economy,” say experts from Leuthold Group.
Furthermore, the ISM services May has rebounded to 45.4 from 41.8 and has been above the expected rise in the market to 44. Another positive indicator is that the new orders component This ISM services has shot up to 41.9 from 32.9, well above the expected drop to 18.5.
“I think this rally has some time left despite certain uncertainties and the liquidity that the Fed is providing is being very decisive,” says the analyst. Jeremy Siegel.
In the business context, they have highlighted the increases of 8% in Twitter. The social network Has Appointed Patrick Pichette, Former Google CFO, New President. Until now, he had held a position as an independent director.
Also positive, the video application Zoom, very popular during confinement, has advanced 7% after exceeding expectations with its results and sets a new record.
Across the Atlantic, the Ibex 35 still installed in the green and It has exceeded 7,600 points, the highest since the beginning of March. In Asia, the exchanges have also closed with optimism, led by South Korea and its 3% rebound. In other markets, the West Texas oil up 0.1% to $ 36.86. Besides, the ounce of gold falls sharply 2%, to $ 1,700, while the euro 0.62% is appreciated and it is changed to $ 1.1238. Finally, the profitability of 10-year American bond it goes up to 0.76%.