Stocks closed mostly lower on Friday, but soared for the week with the Dow up 6.87%, the S&P up 7.32%, and the Nasdaq up 9.01%.
It was one of the best post-election rallies ever. And when combined with the week’s pre-election rally, it made for an overall historic election-week performance.
And with stocks looking poised for an upside breakout, we could see a lot more upside to go.
The strong economic recovery continues on. And that was on full display with Friday’s better than expected Employment Situation report which showed the U.S. economy added 638,000 new jobs last month vs. estimates for 600,000. We also saw the unemployment rate decline from 7.9% to 6.9%, even while the participation rate increased from 61.4% to 61.7%. In addition, we saw the previous month’s tally of 661K new jobs get upwardly revised to 672K.
It was another great jobs report and shows just how strong the economy has been bouncing back.
And after Q3’s unprecedented GDP growth, and forecasts for a strong Q4, not to mention expectations for 2021 to have the strongest full-year GDP in 38 years, you can see why stocks have been rallying, and why it looks like they will continue to do so.
Let’s also not forget about earnings season. It’s been doing great. And that should come as no surprise given how strong Q3 GDP was. We have another 1,352 companies reporting earnings this week.
And lastly, there’s still hope for another coronavirus stimulus package by year’s end.
We’ve got an amazing rally underway. And we could see that extended this week.