Stocks rebounded Thursday afternoon with major indexes turning green as positive data about the economy overcame an unexpected spike in U.S. unemployment claims.
The number of Americans filing for first-time unemployment benefits rose last week to 419,000, up 51,000 from the week earlier and higher than economists’ forecasts.
Investors shouldn’t panic about the jobs numbers because they “continue to suffer from seasonal adjustment difficulties,” due to the automotive industry’s “annual retooling shutdowns,” according to Ian Shepherdson, chief economist at Pantheon Macroeconomics.
Southwest’s Quarter Is Good News for Boeing
“Business is so good that he needs more planes and he has been the biggest buyer of Boeing planes,” Cramer said from the floor of the New York Stock Exchange Thursday.
Despite the strong earnings from Southwest, both the airline and the plane maker were falling in afternoon trading Thursday.
Delta Variant Will Be ‘Only a Snag’ for the Economy
Interest rates are now a sentiment measurement of the Delta variant and how worried investors should be about the most prevalent variation of the COVID-19 virus.
Interest rates should be higher,” Cramer said Thursday because “business is just very very good.” He predicted that the fear of the Delta variant would cause a “snag” in the growth of the economy, “but only a snag.”