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Investors Rotate From Small Caps Into Bonds Ahead of Nonfarm Payrolls
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Most European and Asian markets were closed today for the May Day and International Workers' Day holidays. As a result, volume was on the lower side.

The national ISM manufacturing index rose to 54.9 in April from 53.7 last month and ahead of the 54.3 expected. Equity markets generally rallied as a result, but US Treasuries continued to rally as lower growth expectations were priced in and reduced inflation pressure was noted in the "prices paid" portion of the index. The 10-year yield fell 3.5 basis points today to 2.61% after reaching its lowest level since last October during the session. Weekly jobless claims for last week rose to 344,000 from 330,000 the week prior, possibly due to seasonal adjustments around the Easter holiday.

Amid the mixed broader action, there were some pockets of strength. Housing stocks outperformed the major averages, and social media had a very strong day. The Global X Social Media Index ETF (NASDAQ:SOCL) finished up 2.5% as stocks such as Facebook (NASDAQ:FB) headed higher following a week of mostly sideways action. The S&P 500 (INDEXSP:.INX) ended the day only down 0.02%, but small-cap stocks came under pressure as investment funds rotated into fixed income. The materials sector lagged behind the broader index while telecom stocks led.

In earnings news, we saw better-than-expected reports from MasterCard (NYSE:MA) and Goldcorp (NYSE:GG) and misses from ExxonMobil (NYSE:XOM) and Sally Beauty (NYSE:SBH).

Tomorrow's Financial Outlook

The main event tomorrow will be the April government nonfarm payrolls report. Economists expect that the US added a net 218,000 jobs in the month after a gain of 192,000 last month. The unemployment rate is forecast to drop to 6.6% from 6.7% last month. Earlier this week, the ADP private payrolls report showed a gain of 220,000 jobs this month. March factory orders are due out, but the payrolls report will dominate the morning's trading.

Japan will also report its employment data overnight, with economists expecting its unemployment rate to stay unchanged at 3.6%. Also scheduled for tomorrow is the final estimate of eurozone manufacturing PMI and its March unemployment rate. Because much of the individual eurozone countries have already reported their unemployment rates for the month, there's little chance for a surprise.

Wrapping up the week, Chevron (NYSE:CVX), CVS Caremark (NYSE:CVS), Madison Square Garden (NASDAQ:MSG), and KCG Holdings (NYSE:KCG) are the notable US companies scheduled to report earnings tomorrow.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Investors Rotate From Small Caps Into Bonds Ahead of Nonfarm Payrolls
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Most European and Asian markets were closed today for the May Day and International Workers' Day holidays. As a result, volume was on the lower side.

The national ISM manufacturing index rose to 54.9 in April from 53.7 last month and ahead of the 54.3 expected. Equity markets generally rallied as a result, but US Treasuries continued to rally as lower growth expectations were priced in and reduced inflation pressure was noted in the "prices paid" portion of the index. The 10-year yield fell 3.5 basis points today to 2.61% after reaching its lowest level since last October during the session. Weekly jobless claims for last week rose to 344,000 from 330,000 the week prior, possibly due to seasonal adjustments around the Easter holiday.

Amid the mixed broader action, there were some pockets of strength. Housing stocks outperformed the major averages, and social media had a very strong day. The Global X Social Media Index ETF (NASDAQ:SOCL) finished up 2.5% as stocks such as Facebook (NASDAQ:FB) headed higher following a week of mostly sideways action. The S&P 500 (INDEXSP:.INX) ended the day only down 0.02%, but small-cap stocks came under pressure as investment funds rotated into fixed income. The materials sector lagged behind the broader index while telecom stocks led.

In earnings news, we saw better-than-expected reports from MasterCard (NYSE:MA) and Goldcorp (NYSE:GG) and misses from ExxonMobil (NYSE:XOM) and Sally Beauty (NYSE:SBH).

Tomorrow's Financial Outlook

The main event tomorrow will be the April government nonfarm payrolls report. Economists expect that the US added a net 218,000 jobs in the month after a gain of 192,000 last month. The unemployment rate is forecast to drop to 6.6% from 6.7% last month. Earlier this week, the ADP private payrolls report showed a gain of 220,000 jobs this month. March factory orders are due out, but the payrolls report will dominate the morning's trading.

Japan will also report its employment data overnight, with economists expecting its unemployment rate to stay unchanged at 3.6%. Also scheduled for tomorrow is the final estimate of eurozone manufacturing PMI and its March unemployment rate. Because much of the individual eurozone countries have already reported their unemployment rates for the month, there's little chance for a surprise.

Wrapping up the week, Chevron (NYSE:CVX), CVS Caremark (NYSE:CVS), Madison Square Garden (NASDAQ:MSG), and KCG Holdings (NYSE:KCG) are the notable US companies scheduled to report earnings tomorrow.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Investors Rotate From Small Caps Into Bonds Ahead of Nonfarm Payrolls
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Most European and Asian markets were closed today for the May Day and International Workers' Day holidays. As a result, volume was on the lower side.

The national ISM manufacturing index rose to 54.9 in April from 53.7 last month and ahead of the 54.3 expected. Equity markets generally rallied as a result, but US Treasuries continued to rally as lower growth expectations were priced in and reduced inflation pressure was noted in the "prices paid" portion of the index. The 10-year yield fell 3.5 basis points today to 2.61% after reaching its lowest level since last October during the session. Weekly jobless claims for last week rose to 344,000 from 330,000 the week prior, possibly due to seasonal adjustments around the Easter holiday.

Amid the mixed broader action, there were some pockets of strength. Housing stocks outperformed the major averages, and social media had a very strong day. The Global X Social Media Index ETF (NASDAQ:SOCL) finished up 2.5% as stocks such as Facebook (NASDAQ:FB) headed higher following a week of mostly sideways action. The S&P 500 (INDEXSP:.INX) ended the day only down 0.02%, but small-cap stocks came under pressure as investment funds rotated into fixed income. The materials sector lagged behind the broader index while telecom stocks led.

In earnings news, we saw better-than-expected reports from MasterCard (NYSE:MA) and Goldcorp (NYSE:GG) and misses from ExxonMobil (NYSE:XOM) and Sally Beauty (NYSE:SBH).

Tomorrow's Financial Outlook

The main event tomorrow will be the April government nonfarm payrolls report. Economists expect that the US added a net 218,000 jobs in the month after a gain of 192,000 last month. The unemployment rate is forecast to drop to 6.6% from 6.7% last month. Earlier this week, the ADP private payrolls report showed a gain of 220,000 jobs this month. March factory orders are due out, but the payrolls report will dominate the morning's trading.

Japan will also report its employment data overnight, with economists expecting its unemployment rate to stay unchanged at 3.6%. Also scheduled for tomorrow is the final estimate of eurozone manufacturing PMI and its March unemployment rate. Because much of the individual eurozone countries have already reported their unemployment rates for the month, there's little chance for a surprise.

Wrapping up the week, Chevron (NYSE:CVX), CVS Caremark (NYSE:CVS), Madison Square Garden (NASDAQ:MSG), and KCG Holdings (NYSE:KCG) are the notable US companies scheduled to report earnings tomorrow.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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