As noted many times before, by many contributors, the market is obsessed with interest rates. Another good example of this obsession is reported in Briefing.coms "updates" of market action this morning.
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<<11:00 ET Dow +40, Nasdaq +7, S&P +5.40: [BRIEFING.COM] Buyers continue to make their way back into the market scene, encouraged by the indices' quick reversal off their opening lows... The Nasdaq is hovering just above its 50-day simple moving average, at 2061, in a move that would add more fuel to the bulls' fire... Strikingly, a similar rally is going on in the bond market this morning... The yield curve has flattened significantly in response to the weaker than expected February employment report... The price on the 10-year note has spiked 45 basis points, which has brought the yield to 3.85%... The implications for mortgage rates has put the homebuilding and mortgage names at the head of the equity market... NYSE Adv/Dec 2288/708... Nasdaq Adv/Dec 1810/1012.
10:25 ET Dow +7, Nasdaq +3, S&P +2.95: [BRIEFING.COM] The market's recovery effort builds steam as the Dow and Nasdaq cross into positive territory... The consolation that - despite the large miss in February nonfarm payrolls - the Fed will most likely maintain its neutral policy over the next six months and make no change to the 45-year low interest rates (at 1.00%) has propped up stocks... Right now, the financial, transportation, homebuilding, gold, and insurance shares are showing decent gains, and the semiconductor sector has just erased its losses... Its reversal has boded well for the indices' turnaround, and suggested that they can move higher with this key group's participation... NYSE Adv/Dec 1669/1200... Nasdaq Adv/Dec 1103/1592.
10:00 ET Dow -5, Nasdaq -8, S&P +0.50: [BRIEFING.COM] Major indices pare their losses as buyers dabble in selective groups... Interest-rate sensitive stocks like homebuilding have done well in the early action buoyed by a sense that the Fed will not be tightening anytime soon... The disappointing February employment report pushed out the likelihood of an interest rake hike from August (was a nearly 100% probability according to the federal funds rates) to September (now a 60% likelihood for a 25 basis point increase)... This has provided a floor of support to the market, knowing that the FOMC will maintain its accommodative policy over the intermediate-term which should keep the trading environment favorable for equities... NYSE Adv/Dec 1174/1504... Nasdaq Adv/Dec 726/1807.
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