Seeking Alpha

Stock futures bounce back after jobs data

  • Stock futures point to an upbeat open despite the disappointing jobs report; S&P +0.6%, Dow +0.4%, Nasdaq +0.7%.
  • Several factors combined to soften the blow of the report, including a willingness to dismiss the headline weakness as a weather-based distortion, and talk that a second weak monthly jobs report might prompt the Fed to slow down the taper.
  • On the other hand, it is clear from the report that the labor market isn't as strong as was previously thought a few months ago when nonfarm payrolls rose 200K-plus.
  • European markets gained ground after a German court delayed a decision on the legality of the ECB's bond-buying program.
  • The early drop in futures was accompanied by a surge in the yen and the subsequent reversal was supported by a wave of yen weakness.
  • Treasurys rallied sharply in response to the report but have slipped off their best levels; the benchmark 10-year yield now is little changed near 2.69%.
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