As Briefing.com suggested in an earlier comment, the markets are set for a strong close. The Dow has comfortably cleared the 10,900 level and will now face more significant resistance at 11,000. Blue chips haven't seen territory in excess of 11,000 since September 14, 2000. Both the S&P 500 and the Nasdaq also trade near the day's best levels on what has been an impressive intraday rally. The one knock that could be lodged against today's trading is that total volume traded will be somewhat light. Yet the fact that today is a Friday (Friday's are characteristically light) mitigates this contention to some degree. Additionally, the markets are working into a seasonally slower period in which total market volume tends to decline. DJTA +0.4%... DJUA +1.0%... SOX -0.5%... XOI +1.8%... BTK +3.9%... Nasdaq 100 +2.5%... S&P Midcap 400 +1.0%... Russell 2000 +0.8%... NYSE Adv/Dec 1917/1126... Nasdaq Adv/Dec 2075/1649.



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It was an unusual day for the markets to say the least. A weaker than expected employment report triggered a gap lower across the major indices. Yet after some initial volatility, the markets trended higher throughout the day. By the end of trading, the Dow had cleared notable resistance in the 10,900 area while the Nasdaq posted an impressive 2.1% gain for the day... The April employment report was released this morning and the numbers were much weaker than consensus expectations. Nonfarm payrolls were down 223,000 versus consensus expectations for a 25,000 increase. Additionally, the unemployment rate ticked up to 4.5% versus the prior month's reading of 4.3%. These aren't good numbers for an economy expected to improve on the back of continued consumer confidence and spending. At some point, investors are likely to revisit the question of whether the Fed has fallen behind the curve on stimulating economic growth... Today the market focused on the employment report's implications for monetary policy. The weak employment data are supportive of a 50 basis point rate cut when the Fed meets again on May 15. After today's activity, Fed funds futures markets are pricing in a 75% chance of a half-point cut. With just six trading days between now and the next policy decision, traders don't want to be left behind if the market decides to rally ahead of the Fed's move. With earnings season winding down and a light economic calendar next week it will be interesting to see whether the market is capable of follow through on today's activity. The unusual Friday strength on particularly poor economic data suggests to Briefing.com that the trend should be higher for the near term. DJTA +1.2%... DJUA +1.4%... SOX -1.3%... XOI +1.9%... BTK +5.2%... Nasdaq 100 +2.4%... S&P Midcap 400 +2.2%... Russell 2000 +1.5%... NYSE Adv/Dec 2072/996... Nasdaq Adv/Dec 2260/1548.



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