It is Thursday, May 28 and the market closed yesterday above a key milestone which has set up stocks for more gains today. We are also reading that weekly jobless claims total 2.123 million, the Fed faces a new challenge with workers who don’t want to go back to their jobs and the U.S. economy shrank at an annual rate of 5% in the first quarter this year. In addition, we see that U.S. home purchase applications rose 54% since April and many employers are making it easier for employees to tap into their 401(k).
The stock market closed above a key milestone and looks set to keep moving higher for now. The S&P 500 broke above its 200-day moving average for a second day, but this time succeeded in closing above it.
First-time claims for unemployment benefits totaled 2.1 million last week, the lowest total since the coronavirus crisis began though indicative that a historically high number of Americans remain separated from their jobs.
Mass unemployment that has accompanied the coronavirus pandemic has been compounded by people who don’t want to come back to work, the Federal Reserve said Wednesday in its periodic summary of the national economy.
The U.S. economy shrank at an even faster pace than initially estimated in the first three months of this year with economists continuing to expect a far worse outcome in the current April-June quarter.
U.S. applications for home mortgages jumped last week, in a sixth straight weekly increase, suggesting the housing market could lead the economy’s recovery from the novel coronavirus crisis even as high unemployment is expected to linger.
Just as employees need a few extra dollars to get by, employers are increasing access to their 401(k) savings. Make sure you proceed with caution before you tap those funds.