Markets are mixed this morning with the Dow Jones down about 31 points. Meanwhile, the NASDAQ is up 27, with the S&P 500 up marginally. Markets were weaker earlier on news weekly jobless claims jumped unexpectedly as the stimulus boost begins to fade.
The Labor Department said initial jobless claims for the week ending Sept. 19 came in at 870,000. That was slightly higher that expectations for 850,000.
Not helping, analysts like Yves Lamoureux, president of Lamoureux & Co. says we could see a second wave of a rolling bear market. “So we have a second wave coming, we have very wealthy people taking profits [on stocks] and we see a lot of speculation in the market. I think the market is going to start to go down again,” he said, as quoted by MarketWatch. “This selloff phase will start slow and extend into 2021, he added. Another big bounce will follow that, with a final drop to come perhaps near 2023.”
Trying to help, Fed Chairman Jerome Powell is also calling for more fiscal support, telling lawmakers, ““We’ve come a long way pretty quickly, and that’s great. But there’s a long way to go. So I just would say we need to stay with it, all of us. The recovery will go faster if there’s support coming both from Congress and from the Fed.”