The stock market provided investors with some solid gains today, as the Dow Jones Industrial Average increased 106.41 points (1.34%) and the S&P 500 also climbed 13.62 points (1.64%). Financial and technology stocks pushed the market higher, while poor economic data kept the gains moderate. Retail stocks also rose today, as many retailers came out with good January numbers.
Wal-Mart sales beat Wall Street’s January sales forecasts, as the company noted that shoppers focused more on necessities like groceries. Macy’s also beat expected January sales figures, even amid recent news that it would be cutting 7,000 jobs.
The better-than-expected company reports beat out the bad economic news that came out today. Unemployment benefit claims rose last week to a 26-year high, and factory orders also fell again for the month of December. On Friday, the Labor Department is coming out with January’s employment report. The unemployment number will undoubtedly be depressing and huge, and some economists are predicting that the unemployment rate rose to 7.5% in January. If we are faced with 7.5% unemployment, it would be the highest rate in 17 years.
I’m very excited to see what the unemployment numbers will actually be, and I am curious to see how investors will react to the announcement by the Labor Department.
Until Tomorrow,
Niki Pezeshki
College Trillionaire
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