Yesterday, the initial jobless claims fell sharply and unexpectedly to 712,000 from 787,000. Experts were calling for a 780,000 number. Add to that this morning’s November nonfarm payrolls report of 245,000 new jobs when the expectation was 438,000 down from a revised 638,000 which resulted in an unemployment rate of 6.7% from 6.9% the month before.
The current spike and resultant retardation of economic activity have yet to be felt but we will see these December numbers affected by the reports that will come out in January. At the same time, the vaccine will be out.
Always remember that the stock market looks forward to the economy will completely recover once the vaccine is widespread and the stock market will and is reacting to that news.