A new month is off to a bullish start, it seems, as stock futures rally after Friday’s better-than-expected 916,000 rise in jobs in March, bolstering investors’ hopes for a strong recovery after COVID-19.
In terms of data, there’s a lot to be appreciated, according to Tim Duy, chief US economist at SGH Macro Advisors.
“Assuming the pandemic will only get more under control this year, I suspect a significant drag on the pace of job growth this year will be the rate at which companies can hire workers. Firing is easier than hiring and employers are now busy adding employees, ”Duy said in a note to clients.
So watch out for those “we can’t hire workers” stories that are coming, he says.
To our call of the day from Thomas Lee, the founder of Fundstrat Global Advisors, who says the face ripper rally he recently predicted is showing no signs of slowing down. And there’s a $ 4.5 trillion reason to believe the profits will carry through into April, he told clients.
Aside from the positives already out there for this market – a strong economy and the roll-out of vaccines – Lee points to a pile of institutional money on the sidelines, with cash balances of $ 3 trillion, the highest since June 2020. starts at $ 2.764 trillion. by 2021, a “dramatic” profit of 9% or $ 241 billion, Lee said.
A cautious stance from institutions that went “parabolic” in the latter half of March adds to the $ 1.5 trillion in cash in the retail money market.
“The total money on the sidelines is $ 4.5 trillion = tons and tons of firepower on the sidelines. This bodes well for April’s equity gains, ”said Lee.
Lee expects small caps, energy and cyclical stocks – targeting an economic recovery – to continue into the second quarter.
Remember that cyclical stocks make up only 33% of the S&P 500 SPX,
total weight and more than 60% of the Russell 2000 index RUT,
So if Cyclicals, aka Epicenter, works, small-cap stocks will do better, ”he said.
Check out this chart
Adam Kobeissi, founder and editor-in-chief of The Kobeissi Letter, expects the bullish jobs report to send the S&P 500 to 4,035 to 4,050 in the near term, but from there he’d like it to go back to 3,950 to 4,000, to set up for another higher low point before a move to 4,100.
The Kobeissi Letter
“That’s why we’re staying on the sidelines to start this week, because moving for such a strong market is not a position we want to take, and we will maintain a bullish outlook over the medium term with the intention of returning to our bullish positions. in the wake of a market decline, ”Kobeissi told subscribers.
Heading for the Public, Dow Jones Industrial Average YM00,
futures are up 200 points and S&P 500 ES00,
and Nasdaq-100 futures NQ00,
were up 0.5% and 0.4%, respectively. European markets have been closed for longer Easter holidays, and most of Asia has also been closed. The return on the 10-year TMUBMUSD10Y,
note was stable at 1.72%. The following data includes the Institute for Supply Management’s services index in March and factory orders in February.
Oil prices CL00,
slipping after last week’s decision by the Organization of Petroleum Exporting Countries and Allies to boost production, and after Saudi Arabia reportedly raised prices for Asian customers.
Shares of electric car maker Tesla TSLA,
are up 6% in premarket. Tesla said on Friday that 185,000 cars were delivered in the first quarter, which is better than Wall Street’s predictions. Wedbush upgraded Tesla to outperform neutral, setting a new price target of $ 1,000, compared to a previous $ 950.
GameStop GME,
Shares are down 10% after the games retailer and one of the popular meme stocks of the year said it would sell up to 3.5 million common shares.
South Korean electronics giant LG 066570,
exit the smartphone market.
Delta Air Lines DAL,
had to cancel 100 flights on Sunday due to staff shortages and will open the middle seats earlier than expected.
The UK government plans to offer everyone in the country two free virus tests per week. Shares in India IN: 1 fell 2% while daily COVID-19 cases reached 100,000, the second country to see that number of cases after the US
A bitcoin revolution is underway and MarketWatch is gathering a cast of crypto experts to explain what it all means. Register! Bitcoin BTCUSD,
for that matter, it remains stable at $ 57,422
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