The case of bad news is good news
US stocks of open higher on hopes of more fiscal stimulus and a prolonged accommodative Fed.
The initial jobless claims data was much weaker today (highest claims level since August). The market took the news with the thought that bad news is good news from a fiscal and monetary standpoint.
A snapshot of the market currently shows:
- S&P index up 8.0 points or 0.21% at 3818
- NASDAQ index up 39 points or 0.31% 13169.50
- Dow industrial average up 94 points or 0.3% the 31154
in other markets:
- Spot gold is trading up $4.50 or 0.26% at $1850
- spot silver is trading up $0.26 or 1.04% $25.48
- WTI crude oil futures are trading down $0.28 of -0.53% at $52.64
- Bitcoin on Coinbase is trading up $2200 at $39,530. The price is just off it's high price of $39,575.26
US yields have moved back down by a few basis points in early NY trading:
- 2 year 0.143%, unchanged on the day
- 5 year 0.469%, unchanged on the day
- 10 year 1.093%, +1.0 basis points. The high yield reached 1.1155%
- 30 year 1.825%, +1.0 basis points. The high yield was at 1.8492%
A snapshot of the forex market shows the AUD remains the strongest of the majors. The EUR is now the weakest (was the CHF at the start of the NA session). The USD has moved higher since the NY open but remains mixed with gains vs. the EUR, JPY and CHF, and declines vs the AUD, NZD and CAD. The GBPUSD is near unchanged.