A new month begins at an optimistic pace, or so it seems, as stock futures rise after a better-than-expected Friday gain of 916,000 jobs in March, supporting investor hope a strong rebound after COVID-19.
In terms of data, there are many things we like, according to Tim Duy, chief American economist at SGH Macro Advisors.
“Assuming that the pandemic comes under greater control this year, I suspect that a substantial impediment that limits the pace of job growth this year will be the pace at which companies can hire employees. Layoffs are easier than hiring, and employers are now struggling to add workers, ”Duy told customers in a note.
So watch those stories about “we can’t hire workers,” he said.
Ours call of the day from the founder of Fundstrat Global Advisors, Thomas Lee, who states that the “ripper” rally he recently predicted shows no signs of relaxation. And there is a reason for $ 4.5 trillion to believe the gains will continue in April, he told customers.
In addition to the positives that already exist for this market – a strong economy and the launch of the vaccine – Lee points to a lot of institutional money on the sidelines, with cash balances at $ 3 trillion, the highest since June 2020. This is against 2,764 trillions of dollars at the beginning of 2021, a “dramatic” gain of 9% or $ 241 billion, Lee said.
A cautious attitude of institutions that became “parabolic” in the last half of March adds up to $ 1.5 trillion in cash on the retail money market.
“The total cash on the edge is 4.5 trillion dollars = tons and tons of firepower on the edge. This bodes well for April’s capital gains, “Lee said.
Lee expects small capital, energy and cyclical stocks – geared towards an economic recovery – to continue to drive in the second quarter.
“Remember that cycles account for only 33% of the S&P 500 SPX,
total weight and more than 60% of the Russell 2000 RUT index,
So if Cyclicals, aka Epicenter, works, small-cap stocks will outperform, ”he said.
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Adam Kobeissi, founder and editor-in-chief of The Kobeissi Letter, expects the bullish job ratio to send the S&P 500 to 4,035 to 4,050 in the near future, but from there he would like to see it back to 3,950 to 4,000, for set for another minimum level before moving to 4,100.
Kobeissi’s letter
“Therefore, we remain on the sidelines to start this week, as stepping in front of such a strong market is not a position we want to adopt and we will maintain a medium-term perspective with the intention of returning to our constituent positions. . as a result of the market downturn, ”Kobeissi told subscribers.
In the open direction, Dow Jones Industrial Average YM00,
futures increase by 200 points and the S&P 500 ES00
and Nasdaq-100 NQ00 futures,
increased by 0.5% and 0.4%, respectively. European markets are closed for an extended Easter break, and most of Asia has been closed. Yield on TMUBMUSD10Y for 10 years,
the grade was constant at 1.72%. Future data includes the Institute for Supply Management’s March services index and February factory orders.
CL00 oil prices,
slips after last week’s decision by the Organization of the Petroleum Exporting Countries and Allies to increase production and after Saudi Arabia raised prices for Asian customers.
Actions of the electric car manufacturer Tesla TSLA,
increased by 6% in the premarket. Tesla said Friday that first-quarter deliveries totaled 185,000 cars, exceeding Wall Street forecasts. Wedbush upgraded Tesla to outperform from neutral and set a new target price of $ 1,000, up from $ 950 previously.
GameStop GME,
shares fell 10% after the game retailer and one of the popular meme stocks of the year said it would sell up to 3.5 million in common shares.
South Korean electronics giant LG 066570,
comes out of the smartphone market.
Delta Air Lines DAL,
had to cancel 100 flights on Sunday due to staff shortages and will open mid-seats sooner than expected.
The British government intends to offer two free virus tests a week to everyone in the country. Stocks in India IN: 1 fell 2% as daily COVID-19 cases reached 100,000, the second country to see that level 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. Sign up! Bitcoin BTCUSD,
in fact, it remains at $ 57,422
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