After a sell off into the close Friday afternoon, the markets look set to pick up right where they left off. A couple of hours before the open, S&P futures are off twelve handles, and the euro is breaking support levels. It looks like a very interesting start to an important trading week.
On Friday, the government said that just 88,000 jobs were created in March, a number that came in well below expectations. And yet the unemployment rate fell again, with big drops seen in some key demographics.
The Federal Reserve is, of course, a bank. So after it has a meeting, it issues a statement outlining the discussion — a “bank statement.” Hmm… Now that I think about it, that must be where the acronym “BS” comes from.
By Eric Parnell:The stock market has opened a fresh window of opportunity with the recent sharp rally that began on Monday. The time is now to begin seizing this opportunity, for it may not last for very long.
The Mole submits: A poor close on Wall Street last night with the pattern of attempted rallies getting sold into continues, driven in part by the corporate calamity that is BP (BP), which lost another 16% (on fears they may be forced to suspend their dividend). BP CDS is now around 400bp, 12x higher than before the leak.
The Federal Reserve is close to embarking on another round of monetary stimulus next week, against the backdrop of a weak economy and low inflation—and despite doubts about the wisdom and efficacy of the policy among economists and some of the Fed's own decision makers.