Stocks push through to new highs
The jumbo rate cut and a decline in unemployment claims brings Goldilocks to mind.
After days of dancing back and forth over all-time highs, stocks punched into record territory in early trading on Thursday, as traders and investors alike enjoyed the tonic effects of yesterday’s jumbo, half-point rate cut from the Fed.
Adding to the good feeling was a better than expected report on new weekly claims for unemployment benefits. There were less of them — 219,000 — than Wall Street analysts had expected — 230,000 — which on balance indicates that the economy is no where near falling off a cliff, taking corporate profits with it.
The combo of lower rates on solid economic prospects translated into a gain of more than 1.5% in early trading for the S&P 500, putting it on track for its best day in more than a month. The jump for the Nasdaq 100 was even better, with the tech heavy index rising more than 2%. Bunker stocks like Coca-Cola, AT&T, where jittery investors focused on economic worries have been hiding out, are the some of the biggest weights on the market, as the good vibes seem to be breaking out all over.
