What we’re reading (9/24)
“U.S. Unemployment Claims Hold Steady At 870,000” (Wall Street Journal). “The number of applications for unemployment benefits has held steady in September at just under 900,000 a week, suggesting the labor-market recovery is stalling as layoffs restrain hiring gains six months into the pandemic.”
“Junk Bond Jitters May Signal The Start Of A Stock Market Capitulation” (MarketWatch). Yikes. Let’s hope not. “[T]he biggest exchange-traded fund focused on sub-investment grade debt, the iShares High Yield Corporate Bond fund…was hit by nearly $1.06 billion of outflows on Monday, the largest single-day outflow since the start of the pandemic.”
“Pay Cuts Become Permanent For Many Americans During Pandemic” (Bloomberg). “Pay cuts introduced by U.S. employers in the early days of the coronavirus pandemic -- meant to stave off layoffs and retain key employees -- have proved less temporary than perhaps originally envisioned.”
“Dust Off Desks And Boot Up Terminals: Wall St. Returns, Fitfully” (Dealbook). “The fitful nature of the finance industry’s return highlights how the waning threat of the coronavirus in New York — at least for now — has done little to reduce uncertainty around when things will return to normal. With governmental guidance remaining nebulous, many Wall Street firms have made up return-to-office policies that reflect their business and their leaders’ philosophies. Large banks, where face time and long hours are considered virtues, are generally urging workers to come back. Many hedge funds…are not. Private-equity firms and asset managers, which have a mix of workers and deal with both long- and short-term investments, appear to be taking a middle path.”
“New Home Sales Crush Expectations, But The Supply Is Running Out” (CNBC). “Exceptional demand for new and existing homes, brought on by the stay-at-home culture of the coronavirus pandemic, has the housing market severely depleted. Sales of newly built homes jumped to the highest level in 14 years in August, but builders’ supply dropped to just 3.3 months’ worth at the current sales pace. A six-month supply is considered a balanced market. Supply was at 5.5 months in August 2019, according to the U.S. Census.”
