|Real-time Estimate - 01/20 06:26:38 pm|
30,000 and beyond
|11/25/2020 | 09:19am|
New York indexes pause after the Dow Jones Industrial Average passed the 30000 points mark for the first time. Vaccine hopes, Joe Biden’s new team and the fact that Donald Trump may have started to concede his defeat all boosted markets in recent days.
But there is some bad news today, as fresh data shows the number of Americans filing first-time claims for jobless benefits increased again last week, for the second time in a row, amid rising Covid-19 cases.
Initial claims for state unemployment benefits reached 778,000 for the week ended Nov. 21, compared to 748,000 in the prior week, the Labor Department said.
But on markets, the rush towards cyclical and/or discounted stocks continues, especially on banks and energy, which are taking their revenge after an apocalyptic first half year.
And let's not forget that all this is made possible by the extraordinary commitment of central banks to flood the markets with liquidity. Above all, financiers do not see the Fed or the ECB turning off the tap in the quarters to come, which reinforces their belief that the economic cycle, which had already resisted the deterioration of Sino-American relations, could well survive the pandemic.
Today, we have a flurry of data with weekly unemployment registrations, a new reading of Q3 GDP, household income and spending, wholesale inventories and durable goods orders, the University of Michigan's new real estate figures and consumer confidence index, oil inventories and the minutes of the last Fed meeting.