SubscribeDaily Futures Commentary May 8, 2009
Friday, May 8, 2009
The key report today is the U.S. Non-Farm Payrolls Report. Pre-Report guesses are for a loss of 600,000 jobs. Earlier in the week the ADP employment Report showed a loss of 490,000 jobs and Weekly Job Claims were reported less than expected. If the government reports a number similar to the ADP number then stocks will surge and bonds will plunge. The U.S. Dollar will also get hit hard to the downside. The question is how much of this report has already been factored into the markets.
Overnight, the U.S. Dollar is trading weaker against most major currencies after yesterday’s release of the Fed’s bank stress test results showed none of the 19 U.S. banks being examined is facing insolvency.
If anything was revealed, it was that more than a few of the biggest banks need to raise more capital to meet the Fed’s requirements. This can only be accomplished three ways: by selling assets, converting preferred shares to common stock or asking the government for more money.
From an investor’s standpoint there is relief that this stressful (no pun intended) period of economic history is over. …
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