Today's Top Stories From the Breitbart News Desk
The S&P 500 closed above 4,000 for the first time in history. These big milestones for U.S. stocks are often derided as not very meaningful but can be psychological barriers for markets. Breaking above a threshold can be a sign of confidence in the economy. Certainly, stocks are now enjoying the boost from the third round of stimulus spending, a Fed that promises to be supportive for years to come, vaccinations spreading to ever-larger segments of the population, and an economy that is out-performing almost everyone's expectations.
Thursday's ISM Manufacturing Survey was the latest piece of evidence that the economy is firing on all cylinders. The headline number jumped to the best reading since 1983, with strong readings in new orders, production, and employment. The numbers were so strong that they are feeding into fears that the economy could overheat and produce too much inflation. In the anecdotal portion of the ISM report, many executives complained about the soaring costs of raw materials—which could be an early warning of inflation to come or a transitory price jump reflecting the economy's lurch from a sudden stop to a tire-screeching relaunch.
There are still danger signs outside of inflation. Economists had forecast that the initial jobless claims number released Thursday would indicate continued improvement in the labor market, with a median estimate of 675,000 claims. Instead, claims moved up to 719,000. And the total number of people claiming unemployment benefits remains staggeringly high at more than 18 million.
Tomorrow's monthly jobs report is expected to show a tidal wave of hiring, with 650,000 workers added to payrolls and unemployment falling to 6 percent. Goldman Sachs is projecting 775,000, and the top of the range of estimates by analysts surveyed by Econoday is one million. Anything topping that upper estimate would be good news for workers but likely would further stoke fears of inflation.
– Alex Marlow & John Carney
Breitbart News Network
