Opening Market Commentary For 04-03-2014
Premarkets were mostly flat and then jumped to +0.16% just before the opening bell. Markets opened in the green as the DOW and SP500 again set new historical highs at 16604.15 and 1893.80.
By 10 am the averages were elevated and trading sideways on moderate volume. The $VIX rose from 12.98 to 13.45 and the markets are volatile and investors need to look for sudden reversals.
This morning the initial jobs claims rose the most in 10 weeks missing expectations and the widening trade deficit which will surly tumble the GDP. A ‘bad’ claims data is great news for tapering the taper and the bulls were let down by Draghi, now we need Friday’s payroll data to be truly dismal.
US trade deficit widens to $42.3 billion in February, highest in 5 months, as exports fall
WASHINGTON (AP) – The U.S. trade deficit climbed to the highest level in five months in February as demand for American exports fell while imports increased slightly.
The deficit increased to $42.3 billion, which was 7.7 percent above the January imbalance of $39.3 billion, the Commerce Department reported Thursday. U.S. exports slipped 1.1 percent to $190.4 billion as sales of commercial aircraft, computers and farm goods fell.
Imports edged up 0.4 percent to $232.7 billion, reflecting gains in imports of autos and clothing which offset a drop in crude oil that fell to the lowest level in more than three years.
A higher trade deficit acts as a drag on economic growth because it means U.S. companies are making less overseas than their foreign competitors are earning in U.S. sales.
More Americans seeking jobless benefits, but weekly claims are still at pre-recession levels
WASHINGTON (AP) – The number of people seeking U.S. unemployment benefits rose 16,000 last week to a seasonally adjusted 326,000. Despite the increase, the number remains close to pre-recession levels and points to stable hiring.
The Labor Department said Thursday that the four-week average of applications, a less volatile measure, inched up 250 to 319,500. Applications are a proxy for layoffs.
They have fallen back to roughly pre-recession levels, an indication that companies are letting go of fewer workers and expect solid economic growth in the months ahead. The low level of applications for benefits has boosted optimism about how many jobs employers added in March.
Weekly claims for unemployment aid have reached a level that is typically consistent with monthly job gains of more than 200,000.
