STRONG EMPLOYMENT NUMBERS PUSH STOCKS SHARPLY HIGHER -- BUT HURT BONDS
EMPLOYMENT NUMBERS SURPRISINGLY STRONG... Today's employment report was much stronger than expected. It showed job growth for the first time in eight months. And, the unemployment figure was unchanged. The immediate market reactions are predictable. Stocks are opening sharply higher. Breadth figures are extremely strong. The S&P 500 is up more than 14 points and is nearing the highs formed two weeks ago. Chart 2 shows the yield on the 10-year T-note bouncing off its 200-day moving average. T-note prices are trading sharply lower as a result. That's not surprising. Strong economic news usually hurt bonds, but help stocks. The U.S. dollar is also bouncing this morning on the strong employment data. Chart 3 shows the Euro dipping as the dollar bounces. Chart 4 shows that a stronger dollar and higher stocks are causing some profit-taking in gold shares. Now it's a question of whether the morning's market moves can last through the balance of the day.
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