The stock market is continuing its rally on Friday, fueled by a better-than-expected jobs report and general investor optimism about the economy reopening. As of 10:15 EDT, the Dow Jones Industrial Average and S&P 500 index were higher by 2.8% and 2.2%, respectively.
There isn't any company-specific news pushing STORE higher. The company simply has a lot to gain from a fast recovery in the U.S. economy, and today's data shows that it might be happening.
If you didn't see the jobs report, to call it stellar would be an understatement. Experts had been expecting a decline of 8.3 million jobs in May and an official unemployment rate of 19.5%. What we got was an increase of 2.5 million jobs, which is the largest monthly increase ever. And to make it even better, the unemployment rate declined to 13.3%.
Here's why the job report matters to STORE Capital. Unlike most other net-lease REITs, STORE has quite a bit of exposure to tenants who are vulnerable to economic shutdowns and prolonged recessions, specifically restaurants, movie theaters, day care centers, fitness centers, and family entertainment centers.
Today's data shows that not only could the economy be getting back on track faster than we think, but jobs are rebounding rapidly as well, which is good news for discretionary spending at these businesses.