Market Recap for Week Starting 6/1/2020
This week has seen stocks rise dramatically with the major averages ending above their 6/1 open. The best performing sectors this week have been the Utilities and Financial stocks. Companies associated with the airline and restaurant industries saw dramatic increases in performance this week.
Businesses are continuing to slowly open, as the rate of COVID-19 cases drops. The unemployment claims are dropping at a much higher rate than in past weeks. New jobless claims released on 6/4/2020 were 1.88 million, which was slightly higher than the 1.67 million consensus forecasts by analysts. Although there were more claims than expected, the number of claims continues to drop, as the economy continues to open.
Surprisingly, the May jobs report has shown an increase in the number of non-farm payrolls in the economy. The May non-farm payroll was increased by 2.509 million, which is extremely higher than the expected -8 million projected for this past month. The current unemployment rate down to 13.3%, which is lower than last month 14.7%. These results are also lower than the 19.6% expected unemployment rate for this month.
Interest rates increased throughout the week. Monday, the 10-year Treasury yield was 0.66% which increased to 0.82% on Thursday. The long-end rates increased slightly with 30-year bonds rising from 1.46 on Monday to 1.61 on Thursday. Mortgage rates for 30-year fixed increased slightly, while 15-year fixed, and 5/1 ARM loans had mild decreases in their rates.