Weekly Outlook: Jobs, Jobs, Jobs
U.S. equity markets rallied this week, recovering last week’s coronavirus-related losses on indications that the outbreak may be contained, while strong domestic economic data and solid corporate earnings restored investor optimism.
After dropping more than 3% over the prior two weeks, the S&P 500 finished higher by 3.2% while the Dow Jones Industrial Average added more than 840 points.
Jobs, jobs, jobs. The U.S. economy recorded positive employment growth for a record-extending 112th consecutive month, precipitated by a return of previously discouraged workers back into the labor force.
REITs were broadly higher this week as earnings season hits high gear. The beaten-down mall REITs were the focus on a wild news week of potential mergers and acquisitions.
Homebuilders remain red-hot, confirmed by another round of strong earnings results, as the "Goldilocks" environment of low mortgage rates and continued job growth has powered robust demand for housing.