Friends
The disappointing non-farm payroll number that was released last Friday when the stock market was closed had futures traders wringing their hands over the Easter weekend. Indeed, stocks tumbled at the open of trading this morning, but quickly reversed in what seemed like a bad news in good news revelation. Yes, the realization that the lousy jobs number could, along with previous weak economic data points, give the Fed plenty of ammunition should they decide to hold off on raising the Fed funds rate any time soon. Dovish comments by a noted Fed official, today, helped confirm those feelings.
By the close, the Dow Jones Industrial Average was up 117 points to finish the day at 17,880. The S&P 500 was up 13 points to close at 2080. Gold was up $15 to trade at $1215 per ounce, while oil was up $2.83 to trade at $51.97 per barrel WTI.
We now are entering another earnings season, one that has seen expectations somewhat lowered, so over the next few weeks don’t be surprised to see plenty of volatility. Traders will want to see if the recent strength in the dollar and the less than stellar economic backdrop will translate into a difficult earnings season for corporations. Stock price action will be determined by whether disappointment or excitement has been priced in. It should be an interesting next few weeks. Stay tuned.
Have a nice evening everyone.
