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SPY: Volatility Or Not, The Labor Data Says The S&P 500 Is Going Higher

Apr. 04, 2021 1:57 PM ETSPDR® S&P 500 ETF Trust (SPY)11 Comments
Thomas Hughes profile picture
Thomas Hughes


  • Discounting the regularly expected pullbacks and minor corrections, the S&P 500 is going higher, much higher.
  • Signals within the labor market are very strong and point to a rapid reacceleration of economic activity that will spur earnings growth as well.
  • GDP estimates are robust and call for up to 8% growth this year and I think they are too conservative.
  • Earnings are on the rise as are earnings estimates and this is leading the market higher. My target is up to the 5600 range within a couple of years.

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Photo by arthobbit/iStock via Getty Images

Labor Market Strength Points To Accelerating Economic Activity

With COVID-19 still in the air and a new administration stirring things up there is a fair amount of uncertainty in the air. Despite this, the market

This article was written by

Thomas Hughes profile picture
I am the son of an Army helicopter pilot, a former chef, and a longtime market watcher and trader.I developed my trading style and market strategies writing analysis and commentary over the past 18+ years. I keep abreast of economic trends and the earnings outlook and then apply that knowledge to the market and the charts. I analyze dozens of reports daily and write as many articles each week. In so doing, I root out the best sectors and companies for investment from the earnings growth perspective. As a trader, my main focus is the S&P 500, but I follow the broader market as well as, gold, oil, the dollar, and cryptocurrencies. When it comes to investing, my goal is to buy strong dividend-paying stocks with earnings and dividend growth potential at the right technical times. I've found that this combination usually leads to capital gains, market-beating dividends, dividend growth, and an increasing yield on investment.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I'm not long the S&P 500 but I hold positions in many S&P 500 companies including WBA, JPM, JBHT, KMI, KHC, KR, and PEP.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (11)

Thomas Hughes profile picture
Wow did you guys see that JOLTs figure today? It jumped to 7.4 million open jobs, 0.4 million above consensus, and just shy of the all-time record.
@Thomas Hughes , So the stock market keeps rallying?
Thomas Hughes profile picture
@kimbillro That's what I think. If not for the data then because of all the stimulus and extra money supply....
@Thomas Hughes , Yes, it takes money to buy stocks.
Wait, now good news is good? I'm so confused.
Thomas Hughes profile picture
@Gulabdang good news is so good it is trumping all else, as mush as their is to be worried about...
Things like money printing and stimulus packages are just too strong for a major correction to appear in the near future.
jimbo162 profile picture
Good read Thomas, you were right about the markets a year ago. Many were predicting gloom and doom. You nailed it. I am a bit concerned with rising t bill rates....it has caused a selloff in the bond market. This doesn't normally foretell a booming stock market so i am still cautious.
Thomas Hughes profile picture
@jimbo162 Thanks, caution is always wise.
We will see what the Bond Gurus do tonight! 1.73’close on the 10 yr Friday
@arunasnasvytis , I am waiting also.
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