Reply #64: 12:18 EST numbers (redder) and blather [View All]

[UpInArms]

Dow 10,442.94 -60.82 (-0.58%)
Nasdaq 1,989.28 -9.95 (-0.50%)
S&P 500 1,176.11 -4.48 (-0.38%)
10-Yr Bond 4.506 +0.10 (+0.22%)

NYSE Volume 996,712,000
Nasdaq Volume 960,357,000

12:00PM: Major indices remain under pressure midday as falling bond yields, amid mixed economic data, and rising oil prices, continue to weigh on sentiment... With Treasurys now assuming a leadership role over oil prices in terms of market influence, volatility in bond yields has played havoc with the overall tone of trading... Falling bond yields, in the wake of the Mar. employment report, had initially pushed yields on the 10-year note lower to around 4.4% amid eased inflation fears... Non-farm payrolls rose 110K, well below forecasts of 220K and last month's revised read of 243K (down from 262K)...

But a strong prices paid component in the ISM data almost as quickly increased speculation of more aggressive Fed tightening, as bond yields surpassed 4.5%, market internals deteriorated and selling interest returned to minimize gains in sectors that had been much stronger in the early going... Still pacing the way higher, however, has been Energy (+1.4%), as short covering in crude oil futures has pushed the commodity close to $57/bbl, extending yesterday's 2.5% advance...

Interest-rate sensitive issues like Utility and Homebuilding have also maintain gains despite rising rates, but Financial has failed to follow suit amid weakness in Banks and Brokerage... Technology remains mixed, with weakness in Semiconductor and Hardware offsetting modest gains in Software, while Health Care, Consumer Staples and Industrials have also traded lower... Separately, investors have gotten the latest read on Michigan Sentiment, which basically matched expectations of 92.5, but the revised data, along with faintly followed Feb. construction spending, which rose 0.4% (consensus 0.6%), have had little impact on overall market activity...