Markets continue to rally despite latest job losses
As economies continue to gradually reopen, markets rallied to end a positive week in equities. On Friday, the Dow rose 1.91%, closely trailed by the S&P and the Nasdaq which not only opened above 9,000 for the first time since the pandemic struck, but closed at 9,121. The Nasdaq has been on its longest winning streak since last December. Construction crews are among the first workers to return to the job, and Caterpillar surged 4.49%.
Though its streaming service has been thriving during the lockdown, Disney shares got a lift when tickets to the reopening day of Shanghai Disney sold out quickly Friday. This news inspired one analyst to suggest that Disney World could open sooner. Disney stocked jump 3.4%. Businesses that continue to cater to stay-at-home consumer continue to thrive, with Peloton soaring 33% this week.
Though markets this were optimistic, the latest unemployment numbers tell a grim reality: the Canadian unemployment rate was 13% in April with 1.47 million full-time jobs lost, mostly in the service sector. However, Canada lost 1.99 million jobs in April which was half the street estimate. In no way does this underestimate the pain of those unemployed, but the figures partially explain the optimism in markets. The TSX rose 0.9% Friday, led by energy, real estate and financials. Tech favourite, Lightspeed, soared 9% while West Fraser Timber leapt 8.55%. A barrel of WCS jumped 20% to nearly $21.