Most everyone simply did not see this coming.
The Bureau of Labor Statistics delivered an encouraging surprise Friday morning, when it reported that America's unemployment rate actually fell from 14.7% in April to 13.3% in May, shattering economists' expectations for a 19% reading. While we noted in our A Step Ahead e-letter that a number of statistical flukes likely helped the jobless rate, the report is nonetheless an encouraging signal of economic recovery -- one that Wall Street ran with to broad gains.
Boeing (BA, +11.5%), Exxon Mobil (XOM, +8.1%) and Raytheon Technologies (RTX, +6.8%) led the Dow's 3.2% sprint to 27,110.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Dow also received help from Apple (AAPL), which gained 2.9% to hit a new closing high of $331.50. And Apple's climb helped the Nasdaq Composite finish up 2.1% to 9,814 -- just three points away from its previous record of 9,817.18 set on Feb. 19, 2020. The S&P 500 closed up 2.6% to 3,193.
This might be one of the most difficult investing environments of our lifetimes. The Federal Reserve Bank of Atlanta is estimating a 53.8% year-over-year drop in U.S. GDP for the second quarter. FactSet estimates that corporate earnings will drop 43% year-over-year in Q2, 25% in Q3 and still 13% in Q4. And unemployment remains above 13%.
Yet the major indices, helped by considerable Fed support, economic-data momentum and perhaps investors’ fear of missing out, are in the midst of 40%-plus rallies off the bear-market lows.
One strong piece of advice remains the same whether stocks are tanking or soaring: Keep the long view in mind. That could mean focusing on income stocks capable of paying you cash for decades down the road, or longer-term growth plays leveraging blooming technologies such as artificial intelligence.
However, if you think there are more returns to be squeezed out of the current heater, you have your choice of growth options -- for instance, these seven growth funds help you spread your risk across dozens if not hundreds of companies.
Stock investors, meanwhile, should consider these seven growth plays that the analysts have coalesced around. Based on average price targets from recent notes to clients, the pros believe these stocks, from mega-caps to small firms, have the potential to run anywhere from 17% to 63% higher over the next 12 months.
-
The Stoic Retirement: Ancient Wisdom for Today's RealityA "Stoic retirement" doesn't mean depriving yourself. It's a character-based approach to life and aging that can bring calm and clarity.
-
My Teen Crashed His Car and Now Our Insurance Has Tripled. What Now?Dealing with the costly aftermath of a teen car accident is stressful. Here are your options for navigating it.
-
11 Outrageous Ways To Spend Money in RetirementWhether you have excess cash to spend or want to pretend, here’s a look at 11 ridiculous ways retirees can splurge.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffett become people like Warren Buffett by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
-
How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
