Unemployment DECREASED by 2.5 million!

[disneysteve]

California 25% unemployed. DOW up +737 at the opening bell. There is a disconnect between Wall st & Main st.

The national unemployment rate dropped from 14.7% to 13.3% despite all expectations being that it would rise to 19-20%.

As bjl584 said, the market is forward-looking. Things are recovering. Outdoor dining and indoor non-essential retail here in NJ reopens next Monday. I personally know retail and restaurant workers here who have already been called back to work in preparation. Salons and barbers open the following Monday so I'm sure they'll be called back shortly. PA is ahead of us in their reopening so many people there are already in the process of returning to work. As I said, Disney World in Florida has already begun to reopen with Disney Springs. Some of the resorts open June 22 and the parks start reopening on July 11. That represents tens of thousands of employees getting back to work. Airlines are boosting their flight schedules sharply in July so all of their employees and all of the support chain businesses are ramping back up.

I don't think the disconnect is as large as you think.

[bjl584]

California 25% unemployed. DOW up +737 at the opening bell. There is a disconnect between Wall st & Main st.

Wall Street is looking ahead to probably year end.
There is a disconnect, but they aren't reacting to how things are today.
They are reacting to how they think things will be in 6 months.

[QuarterMillionMan]

California 25% unemployed. DOW up +737 at the opening bell. There is a disconnect between Wall st & Main st.

[bjl584]

I was just getting ready to post something about this, but you beat me to it.
Good news for those out of work.

[disneysteve]

Look for another strong day in the markets as the latest jobs report, which was expecting 7-8 million more jobs to be lost actually saw a 2.5 million gain. Rather than the anticipated 20% unemployment rate, the rate actually dropped to 13.3%. As states and businesses continue to reopen, those numbers should only continue to improve. I know Disney just released a long list of all of the cast members who are being called back as they get set to reopen on July 11 (and some of the resorts are reopening later this month).

I've said all along that most of the job losses would be temporary until quarantine was lifted. There are absolutely jobs that won't be back. Many businesses have filed for bankruptcy in recent weeks and many others have announced they are closing permanently. I posted previously about Sweet Tomatoes/Soup Plantation. JCPenney announced the closure of 154 stores yesterday. A local frozen yogurt shop posted yesterday that they won't be back. Pier One is gone for good. And plenty of others. But the vast majority of the recently unemployed will likely be back to work soon.