U.S. STOCKS SURGE DESPITE DOUR JOBS REPORT
Bad news is good news again on Wall Street. Stocks rose at the opening bell Friday to hit more new records -- despite the fact that the United States government reported a surprise loss of 140,000 jobs in December, Paul R. La Monica reported for CNN Business.
Why? The weak numbers highlight the need for more stimulus from Washington. The Dow, S&P 500 and Nasdaq were all up in early trading as investors seem to be betting more help will soon be coming.
Joe Biden will be inaugurated in less than two weeks and Democrats now control the Senate as well as the House following this week's Georgia run-off elections.
"The ongoing battle against the pandemic is putting pressure on the real economy once again," said Charlie Ripley, senior investment strategist for Allianz Investment Management, in an email to CNN Business, "and despite what financial markets are signaling, the labor market is indicating there is still a ways to go on the economic road to recovery."
"The ability for Congress to provide additional fiscal support has increased and today's employment report simply beckons them to do so," Ripley added.
Hopes are also growing for a recovery in the economy as well as corporate earnings later this year, as more people are likely to get one of the COVID-19 vaccines from Pfizer (PFE) and BioNTech (BNTX) or Moderna (MRNA).
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