New Records for Wall Street

Not even the first drop in employment since last April detracts from Wall Street’s positive sentiment. The New York Stock Exchange indices all moved positively (+ 0.65% on the Nasdaq, + 0.34% on the S&P 500) in the last session of the first week of 2021, consolidating yesterday’s gains that pushed the Nasdaq for the first time above 13,000 points and the Dow Jones beyond the 31,000 mark. Investors do not even seem to worry about the growth of infections from Covid-19. More than 4,000 people died in the United States yesterday, according to data from Johns Hopkins University. This is the new record level of daily deaths. Almost 275,000 new cases were confirmed in 24 hours.Calo occupied in December offset by upward revisions previous months In December, 140,000 jobs were lost in the US, worse than expectations of an increase of 71,000 jobs. The job loss was the first since last April. The unemployment rate was stable at 6.7% (consensus was 6.8%).

Counterbalancing are the upward revisions of the figures of the past months (+135 thousand jobs in total compared to previous estimates). The October figure was revised up by 44 thousand units to + 654 thousand, that of November up by 91 thousand units to + 336 thousand. The participation rate in the workforce remained stable at 61.5% (still far from the levels in February when it stood at 63.4%). Average wages rose by 0.8% m / m (consensus 0.2%). Markets await maxi-fiscal stimulus with the arrival of Biden The most marked reaction on the markets has been the retracement of the dollar which pays for signs of weakness of the US economy, held back by the tightening of measures to contain Covid-19. “We believe that the weak data on NFPs can increase the chances that Biden can push for a new relief plan (after the inauguration of January 20), thanks also to the victories of the Democratic representatives in the ballot in Georgia for the last two seats available in the Senate (Warnock on the Republican Loeffler and Ossoff on the Republican Perdue) which led Congress to be more favorable to Bide even if a “bill” of stimuli will be needed 60 votes in favor in the upper house.