The major averages began the week on an upbeat note after shaking off their opening losses that were brought on by a disappointing jobs report for March. The S&P 500 spiked 0.7% while the Nasdaq Composite (+0.6%) followed not far behind.
Index futures were able to cut their losses in half by today’s opening bell and the S&P 500 erased a ten-point deficit just 15 minutes into the session. The index spent the rest of the day in a steady climb with all ten sectors logging gains. Once again, the market interpreted bad news as good, rallying on the belief that the disappointing jobs report will cause the Federal Reserve to postpone its first rate hike.
This morning, Saudi Arabia announced it will hike its prices for oil exports to Asia for the second consecutive month. Interestingly, crude oil held its ground during afternoon action even as the Dollar Index erased roughly half of its decline from Friday.There really does seem to be the possibility of another sector rotation underway. Gold and the miners act much better, but its hard to tell if its just a dead cat bounce or something more. Personally I’m not bullish.Energy is certainly acting better, and many believe the bottom may be in. I’m not so sure on that front yet, but I”m watching for a way to make some money on that front.I have nothing new to add tonight in terms of new names, but I have my eyes on FEYE and RL. Will keep you posted.
See you in the morning.