“Seeing a less grim view of the virus chaos on the US Economy.”–Paul Ebeling
The US’ economic wounds from the China virus chaos is much less severe than initially feared, we along with Goldman Sachs Group Inc.’s (NYSE:GS) economics team offer optimistic takes on America’s economy.
Commercial bankruptcy filings are well below the pre-virus chaos marks, business closures have proved temporary and unemployment has fallen sharply, which augur well for the recovery prospect.
A vaccine, combined with further fiscal support next yr, is expected to limit long-term damage and keep the economy on track for a recovery that could well be “much more rapid than usual,” we believe.
Despite a recent increase in long-term unemployment, the fassst recovery of labor demand and faster pace of labor reallocation helps most workers avoid long unemployment spells seen in previous recessions. President Trump’s policies work.
Notably, the FOMC Mins for the 15-16 September meeting provided no surprises. Fed officials expressed concerns regarding the pace of the recovery if there is no more fiscal stimulus and remained in agreement that the current environment is disinflationary.
Wednesday, the major US stock market indexes finished at: DJIA +530.70 at 28293.46, NAS Comp +210.00 at 11364.53, S&P 500 +58.50 at 3419.47
Volume: Trade on the NYSE came in at 879-M/shares exchanged
HeffX-LTN’s overall technical outlook for the US major stock market indeses is Bullish with a Very Bullish bias.
- NAS Comp +26.7% YTD
- S&P 500 +5.8% YTD
- DJIA -0.8% YTD
- Russell 2000 -3.4% YTD
Looking Ahead: Investors will receive the weekly MBA Mortgage Applications Index and the NFIB Small Business Optimism Index for September Thursday.
Have a healthy day, Keep the Faith!