The US jobs report was great for jobs but earnings were not so
great. You can argue, well earning are coming. You just wait. You can
also argue, been saying that for a while now. How are the markets
taking it?
Dollar.
The
dollar is lower. The EURUSD is trading nearer the highs for the day. It
needs to get and stay above the 1.0774 level to kick in more upside.
The USDJPY is nearer the lows but it needs to get below the 112.51-56
level.
Bonds.
Keeping
the dollar down is the US yields. The 10 year was up at 2.496% at the
highs today. We are now trading at 2.437%. The low yield was 2.4242%.
The 2.50% level continues to be a tough nut to crack and the dollar is
sensitive to interest rates now
Stocks.
The
major indices are higher in the first 20 minutes of trading with the
S&P up 0.37% or 8.5 points (was as high as +10-11 points). They
like jobs and lower inflation (I guess).
Gold
Up about $1.00 or 0.07%. It does not know what to do.
TRUMP
There
is talk of Dodd-Frank changes which has bank stocks up (and perhaps the
overall stock market). Tax talk is also a big ? still. Trump meets
with business leaders.
WIld card. WIth the
market trying to get a feel for what to do/follow, it is Friday and
weekends with Pres. Trump will likely be more risky. So squaring up
flows may also rear it's head.
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