Stock market makes a comeback

But does that mean our economy is recovering?

The coronavirus pandemic drove the stock market right into the ground.

The dow jones industrial average did close ?

"(slightly up today ?

"* and market had been on a pretty sizeable rally in the previous few days.

Which might be rather surprising, considering we are still in a pandemic and there remains civil unrest across the country.

Kimt news 3's nick kruszalnicki is live in mason city to explain why stocks are reacting this way.

Nick?

You're right amy ?

"* it doesn't seem to make much logical sense for the market to have gone up so much.

But that's exactly the point ?

"* markets are driven by two things, greed and fear.

Earlier this afternoon i spoke with rayce hardy, who teaches economics at riverland community college.

He thinks the markets reacted the way they did because restrictions lifted in several states on june first.

Large?

"*scale investors saw an opportunity to buy in.

On top of that, the federal government has been spending a lot of money lately ?

"* they make up one third of economic activity right now.

But hardy tells me the stock market is not an accurate measure of the health of the the stock market is a few thousand companies, we have over 20 million companies in this country.

The dow which is the number one most quoted financial stat in the world is 30 companies.

Hardy says if you want a good picture of how the economy is actually doing ?

"* check out the number of continuing unemployment claims in the united states.

Right now, there are about 21 million still without a job.

Live in mason city, nick kruszalnicki, kimt news 3./// thanks nick.

Last month, the bureau of labor statistics reported the unemployment rate was at 14 point seven percent.

The average unemployment rate in 2019 was at three point seven./// let's get a quick look at the latest coronavirus