Nevada Outlook Heading into the Caucus

Wells Fargo Research Team Wells Fargo

Nevada holds the third nominating contest in the Democratic presidential primary on Saturday, February 22. Bernie Sanders and Joe Biden have led in Nevada polling, but those numbers may shift somewhat following Sanders' victory in New Hampshire last night. Prior to that, Pete Buttigieg apparently edged out Sanders in Iowa.

Nevada was hit extremely hard by the housing bust and ensuing recession, and did not recover all the jobs lost until the end of 2015. Home prices are still below their 2006 peak.

The Silver State is now growing rapidly, however, and has added 321,000 jobs since 2010. Its economy has diversified into logistics & distribution, healthcare, various tech fields and advanced manufacturing.

The leisure & hospitality sector is still very important to Nevada, although the focus has shifted towards entertainment rather than solely gambling. The addition of NHL hockey and NFL football has augmented the abundance of entertainment options, as has the city's new minor league ballpark.

Low taxes and business-friendly regulations have boosted the professional & business services and tech sectors, which have benefitted from an affordability migration out of California.

The influx of businesses has spurred rapid population growth. The latest data show Nevada's population grew 1.8% in 2019, the second strongest gain of any state. Nevada is attracting jobseekers as well as retirees.

Nevada is Growing Fast Again, but Better This Time

Nevada was hit extremely hard by the housing bust and ensuing recession, and did not recover all the jobs lost until the end of 2015, well after the nation as a whole did in January 2014 (Figure 1). The recovery took a while to get under way due to the severity of the collapse and the overreliance on cyclical industries such as gaming and homebuilding, but since 2014 payrolls have consistently risen 3% or more annually. Nevada has added 321,000 jobs since 2010, and, more importantly, employment growth has been across a broader array of industries (Figure 3).

Source: U.S. Department of Labor, Las Vegas Convention & Visitors Authority and Wells Fargo Securities

Source: U.S. Department of Labor and Wells Fargo Securities

Download The Full Special Reports

Author

Wells Fargo Research Team

Wells Fargo

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.