Stocks hit new highs despite the golden jobs report

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Because? Weak figures highlight Washington’s need for more stimulus.

The Dow, S&P 500 and Nasdaq were on the rise in early trading, although the Dow gave up its gains later on as investors appear to be betting more help soon. Joe Biden will be inaugurated in less than two weeks and Democrats now control the Senate and House after this week’s Georgia election.

“The ongoing battle against the pandemic is once again putting pressure on the real economy,” Charlie Ripley, a senior investment strategist at Allianz Investment Management, said in an email to CNN Business, “and despite what the financial markets, the labor market is indicating that there is still a way to go on the economic path to recovery. ”

“Congress’ ability to provide additional tax support has increased and today’s employment report simply makes them a signal, ”Ripley added.

Hopes are also growing for the recovery of the economy and corporate profits later this year, as more people are likely to receive one of Covid-19 vaccines. Pfizer (PFE) i BioNTech (BNTX) or Modern (MRNA).

“Investors are already looking at this temporary period of economic weakness and instead focus on the brighter prospects where fiscal spending, monetary stimulus and the massive distribution of COVID-19 vaccines ensure that the the U.S. economy is quickly returning to its pre-pandemic path, ”he said. Seema Shah, chief strategist at Principal Global Investors, in a report Friday.

Hopes for economic recovery are a likely reason why bond yields are also recovering. The U.S. Treasury’s ten-year yield recently rose above 1% for the first time since March and rose after the jobs report as well.

“This weakness in the number of jobs today may be transient,” Jim Caron, global fixed income portfolio manager at Morgan Stanley Investment Management, said in an interview with CNN Business.

“These data weren’t good, but investors are looking beyond recent volatility on brighter days,” Caron added. He also noted that investors realize that the Federal Reserve is likely to keep interest rates close to zero for several more years, perhaps until 2024.

Lately, there are other signs of economic improvement, despite labor weakness.

The latest ISM manufacturing report showed a continued rise for many U.S. industries, said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Company.

Can something stop Tesla and Elon Musk?

In other market news, Tesla (TSLA) the shares continued their electrifying run, rising another 4% on Friday. Elon Musk’s car company has already skyrocketed by more than 20% in 2021. The company is worth more than $ 800 billion, surpassing the market value of Facebook (FB).
Tesla is now the fifth most valuable company in the S&P 500, with only one behind apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Google owner Alphabet (GOOGL).
Elon Musk surpasses Jeff Bezos to become the richest person in the world
The share capital of Hedosophia Holdings Corp. V, the so-called special-purpose acquisition company of blank checks, rose about 10 percent on Friday after firing nearly 60 percent on Thursday on news that online loan firm SoFi plans to merge with her to make herself public.

The deal values ​​SoFi at nearly $ 8.7 billion.

I bitcoin (XBT) he continued to grind his way up higher as well. The cryptocurrency, which surpassed $ 40,000 for the first time on Thursday, is now worth nearly $ 42,000.

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