Businesses shut down across America during the CCP virus pandemic, leading to millions of layoffs and furloughs. The U.S. job market is attempting to emerge from its worst downturn in modern memory. But it’s not all doom and gloom on the employment front. There are still companies hiring amid the economic calamity as changing consumer habits compel employers in a wide variety of industries to stock up on talent. Grocery and Retail The Kroger Company Kroger and its subsidiaries have been expanding, like other major grocery store chains during the pandemic. The second largest grocer in the United States is still looking to hire about 6,800 people from coast to coast to keep up with consumer demand. Kroger says it has hired more than 100,000 workers since mid-March and has…
U.S. stocks staged a respectable rally Friday, surging on a surprisingly upbeat May jobs report, while safe havens like bonds and gold gave up gains.
All three major equities indexes climbed 2 percent or more, with the tech-heavy Nasdaq briefly hitting a new all-time high before ending the session a sliver below.
The benchmark S&P 500 is almost back to where it was earlier in the year, closing 5.7 percent off its record high.
By closing bell, the Dow Jones Industrial Average rose 829.16 points, or 3.15 percent, to 27,110.98; the S&P 500 gained 81.58 points, or 2.62 percent, to 3,193.93; and the Nasdaq Composite added 198.27 points, or 2.06 percent, to 9,814.08.
The U.S. economy added a remarkable 2.5 million jobs last month, rebounding from April’s record 20.7 million drop and pushing the unemployment rate down to 13.3 percent. Analysts expected unemployment to soar to a historic 19.8 percent.
“The numbers are a huge surprise to the upside,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.
“It would suggest a further confirmation the economy is coming back online,” Arone added. “This is a strong signal that the effects are temporary and that the economy is improving.”
Kudlow said the key to the strong jobs number is that many of those who were temporarily laid off have returned to work. He credited the administration’s small business relief loan scheme, the Payroll Protection Program (PPP), which offers businesses forgivable loans if they don’t lay off workers for a period of time.
“The Payroll Protection Program has kept people on temporary call, kept them furloughed but they knew they were going to come back,” Kudlow said, adding that the PPP has distributed $510 billion and “has probably saved as much as 50 million jobs.”
U.S. Treasury yields rose on Friday’s strong jobs data, a move that signals greater investor appetite for risk. It also gives a boost to interest rate-sensitive banks, with the S&P 500 Banks index ending the session up 4.9 percent.
The price of gold, a classic safe haven sought out by investors in times of turmoil, dropped 2.5 percent for its biggest one-day slide since March.
President Donald Trump at a press conference Friday touted the rebound as being better than a V-shaped recovery, which refers to a sharp economic surge after a plunge.
“We’re opening and we’re opening with a bang and we’ve been talking about the V,” Trump said, adding, “This is better than a V. This is a rocket ship.”
The president also cheered the strong jobs number in a series of tweets Friday morning.
“It’s a stupendous number. It’s joyous, let’s call it like it is. The Market was right. It’s stunning!” Trump wrote in a tweet.
Sixty-seven percent of investors in a survey cited by The Wall Street Journal believe the S&P 500’s next 10 percent move will be down.
“Long may it last,” Arone said of the equities rally.
Reuters contributed to this report.
Focus News: Wall Street Surges on Striking US Jobs Report
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