The bad news keeps coming for the U.S. economy, but don’t expect investors to worry all that much early in the new year.
The government on Friday said the U.S. lost 140,000 jobs in December, marking the first decline in employment since the economy was walloped last spring by the arrival of the coronavirus pandemic. A slew of other indicators have also pointed to a weaker economy.
The prognosis isn’t going to get much better this week.
Retail sales data for December, the headline attraction next Friday, might eke out a small gain. Auto purchases snapped back in December and the holiday shopping season likely goosed sales.
Other reports are expected to show a still-high number of layoffs each week, frail consumer confidence and fewer job openings.
Not that Wall Street is worried. The Dow Jones Industrial Average DJIA,
+0.18%
climbed above 31,000 last week for the first time ever.
Even as the economy flails again under the weight of a record increase in coronavirus infections and deaths, investors are casting their eyes to the future. Vaccines are now being distributed slowly across the country and President-elect Joe Biden has promised to provide more federal aid for the economy.
“If we get the vaccines distributed efficiently, there is a strong base to build on,” said chief economist Robert Dye of Comerica Bank in Dallas.
The latest employment report for December, what’s more, contained more than a few glimmers of hope. Most of the job losses were concentrated once again in bars, restaurants, hotels and entertainment — business that deal directly with customers.
Most other major segments of the economy, however, actually added more jobs in December than in November. That suggests the viral outbreak hasn’t done much damage outside of leisure and hospitality.
“Beneath the surface it was actually a fine report,” said chief economist Tom Porcelli of RBC Capital Markets.
The gulf between how investors view the present and future is likely to persist for some time — not that it matters to the people who’ve just lost their jobs or might soon.
What will help unemployed Americans and the broader economy in the meantime is a package of federal aid signed by outgoing President Trump in December and the prospect of more aid to come from the Biden administration.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
