A new month had a bullish start, or so it seems, with stock futures rising after the 916,000 gain on Friday, better than expected in March, which supports investors’ hopes for a strong post-recovery COVID-19.
As for the data, there is a lot to like, according to Tim Duy, chief economist at SGH Macro Advisors for the United States.
“Assuming that the pandemic will only come under greater control this year, I suspect that a substantial impediment that limits the pace of job growth this year will be the rate at which companies will be able to hire employees. Firing is easier than hiring and employers are now struggling to add workers, ”Duy told customers in a note.
So stay tuned for those “we can’t hire workers” stories, he says.
In our call of the day by Fundstrat Global Advisors founder Thomas Lee, who says the ripper rally he envisioned recently shows no signs of abating. And there is a $ 4.5 trillion reason to believe the gains will come in April, he told clients.
In addition to the positive aspects already existing for this market – a strong economy and the launch of vaccines – Lee points to a pile of institutional money on the sidelines, with a cash balance of US $ 3 trillion, the largest since June 2020. That against US $ 2.764 trillion in early 2021, a “dramatic” gain of 9% or $ 241 billion, Lee said.
A cautious stance on the part of institutions that became “parabolic” in the last half of March, adds to the US $ 1.5 trillion in cash from the retail money market.
“The total cash on the sidelines is $ 4.5 trillion = tons and tons of firepower on the margin. This bodes well for April’s equity gains, ”said Lee.
Lee expects low-capitalization, energy and cyclical stocks – aimed at an economic recovery – to continue to lead in the second quarter.
“Remember that cyclicals are only 33% of the S&P 500 SPX,
overall weight and more than 60% of the Russell 2000 RUT index,
So if Cyclicals, also known as Epicenter, works, low capitalization stocks will outperform, ”he said.
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Adam Kobeissi, founder and editor-in-chief of The Kobeissi Letter, hopes that the optimistic jobs report will send the S&P 500 to 4,035 to 4,050 in the short term, but from then on he would like to see it drop to 3,950 to 4,000, to prepare for another highest minimum before a move to 4,100.
The Kobeissi Charter
“So we are staying on the sidelines to start this week, as stepping into such a strong market is not a position we want, and we will maintain a medium-term bullish outlook with the intention of returning to our bullish positions in the wake of drop in the market, ”Kobeissi told subscribers.
Towards the open, Dow Jones Industrial Average YM00,
futures are over 200 points and S&P 500 ES00,
and future Nasdaq-100 NQ00,
increased by 0.5% and 0.4%, respectively. European markets are closed because of the prolonged Easter holiday, and most of Asia has also been closed. The yield on the 10-year TMUBMUSD10Y,
the note was stable at 1.72%. The data ahead includes the March service index from the Institute for Supply Management and February factory orders.
CL00 oil prices,
are falling after last week’s decision by the Organization of Petroleum Exporting Countries and allies to increase production, and after Saudi Arabia reportedly raised prices for Asian customers.
Shares of electric car maker Tesla TSLA,
increased 6% in the pre-market. Tesla said on Friday that first quarter deliveries totaled 185,000 cars, exceeding Wall Street forecasts. Wedbush updated Tesla to overcome neutral and set a new price target of $ 1,000, compared to $ 950 earlier.
GameStop GME,
the 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 stock.
LG 066570, South Korean electronics giant,
is leaving the smartphone market.
Delta Air Lines DAL,
had to cancel 100 flights on Sunday due to staff shortages and will open intermediate seats earlier than expected.
The UK government plans to offer everyone in the country two free virus tests a week. Inventories in India IN: 1 fell 2%, as daily cases of COVID-19 reached 100,000, the second country to see this level of cases after the USA
A bitcoin revolution is underway and MarketWatch is bringing together a cast of crypto experts to explain what it all means. Sign up! Bitcoin BTCUSD,
by the way, it’s staying steady at $ 57,422
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