It looks to me like the markets are still running on a post-inauguration sugar high. Global shares rose this morning mainly on the optimism of America transitioning to a new administration — the same sentiment that set off a rally on Wall Street earlier this week.
Why?
Investors are hoping that President Joe Biden’s administration will lead to more much needed support to a struggling U.S. economy.
Within his first hours of presidency, Biden announced a plan to drive $1.9 trillion into the downtrodden economy.
Talk about moving fast.
Despite all these good feelings, I’m still concerned with how pricey stock valuations are looking as we go into another round of corporate earnings.
But in even bigger, more concerning news: Jobless claims report just came out.
The current expectation is bad as analysts are predicting 900,000 people to have filed for unemployment… And this isn’t a delayed report, it’s for the week of Jan. 16, 2021.
We’ll be seeing real-time numbers of Americans without work in a struggling and pandemic driven economy. If the number stays within consensus range or tops one million, we’re going to be in big trouble and this will be all the ammunition Biden needs to give more stimulus.
I don’t know if you remember this, but last week this jobless claims report was the only thing able to subdue the market that had been going hot.
And folks, I just saw the numbers on the new jobless claims report that came out a few minutes ago… and things aren’t looking good.
Here’s what to expect from the stock market’s reaction.
In today’s video, you’ll also learn which index is leading the global economy… what Fed data is telling us about economic growth… and three stocks that show low-risk, high-probability momentum.
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