Monday, April 5, 2010
Stocks are called higher following the U.S. Non-Farm Payrolls report on Friday. At first traders sold the equity markets because the increase of 162,000 jobs was below
the pre-report consensus of 200,000. The markets turned around after investors realized that the increase in private sector jobs was better than the guesses.
The strength in the markets today will be determined by investor confidence in the improving economy. If they believe the jobs picture will continue to improve, then look
for a rally. If traders believe that interest rates are moving up too fast then gains will be limited.
News that Apple iPad sales were greater than estimated could help drive up NASDAQ futures. This should spillover to the other indices.
Treasury futures are trading slightly better. This is most likely because of oversold conditions. The jobs report put pressure on T-Bonds and T-Notes on Friday. Traders
felt this report brought the Fed closer to hiking interest rates. Yields rose overnight in limited trades.
The mixed …
