STRONG JOBS REPORT PUSHES STOCKS SHARPLY HIGHER -- BOND YIELDS JUMP OVER 4% -- STRONG DOLLAR PUSHES GOLD DOWN -- STRONG CHIP SALES BOOST SOX
NASDAQ AND S&P 500 BREAK 50-DAY LINES -- SOX LEADS MARKET HIGHER... The economy created 308,000 new jobs during March which is the biggest monthly jump in four years and three times what economists were expecting. The intermarket reactions are dramatic, but not unexpected. Stocks are opening sharply higher while bond prices are falling heavily. The dollar is jumping and gold prices are falling. Once again, technology stocks are leading the rally led by semiconductors. A report that global semiconductor sales had the biggest monthly gain since 1987 and the biggest year to year gain on record is pushing the SOX Index through its 50-day moving average line as well.
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BOND YIELDS SURGE -- GOLD DROPS... The strong jobs report is causing a dramatic fall in bond prices -- and a corresponding jump in bond yields (which move in opposite directions). The 10-year T-note yield has jumped all the way to 4.12%. That's not surprising in the face of very strong economic news. It also confirms that money is rotating out of bonds and into stocks. The dollar jumped sharply on the jobs report and gold prices fell $8.00. That causing selling in gold shares. Sector rotations within the stock market also show more optimism. While technology is the strongest sector, the weakest are consumer staples and energy. MORE LATER.
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