Happy Wednesday everyone! The market is in its third day of gains as data shows the economy is recovering. Treasury yields climb as economic reopening outweighs civil unrest concerns and companies trimmed another 2.76 million workers in May. We also read that mortgage demand jumps as interest rates set another record low and Americans are saving more and spending less during the pandemic, but that’s unlikely to continue as states reopen.
Stocks rose on Wednesday on the back of better-than-expected economic data, which bolstered optimism over the recovery from coronavirus-led shutdowns.
U.S. government debt prices were lower Wednesday morning as optimism over the reopening of economies following coronavirus-induced shutdowns boosted risk appetite for investors.
Companies trimmed another 2.76 million workers in May as the coronavirus pandemic continued to slice through the U.S. economy, according to a report Wednesday from ADP.
Mortgage applications numbers get stronger each week as homebuyers rush back into the market, hoping to get their hands on what few homes there are for sale. Another record-low mortgage rate didn’t hurt.
Americans are saving more and spending less, but it’s unlikely to continue as states start to reopen
The personal savings rate hit a historic 33% in April, the U.S. Bureau of Economic Analysis said Friday, by far the highest level of saving since the department started tracking data in the 1960s. That’s unlikely to continue as states start to reopen but 40 million Americans are suddenly facing unemployment.