Wednesday, March 31, 2010
U.S. Equity markets are trading flat ahead of this mornings ADP private jobs data report. Prereport estimates are for the report to show an increase of 40,000 jobs. A
better than expected number is likely to drive stocks higher as it would represent an improving economy. The key to sustaining a rally today will be if U.S. investors decide to chase the markets
higher. Lately, investors have shied away from buying strength, feeling that the best way to play this market is to buy the dips.
Trading has been light and volatility low this week as the stock market closes out a rather bullish first quarter. The strength this quarter came as a surprise to most
analysts who expected flat returns due to last year’s huge run-up.
Rising interest rates have been negatively influencing the markets this week as 30-year bond and 10-year note yields have risen. This is creating competition with the
equities because of the high guaranteed rates the government debt instruments are offering.
June Treasury …
