Jobs Rock Financial Futures
In a topsy-turvy market, stock index and interest rate
futures are reversing course.
T-bonds
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New 10-Day High on the unexpected surge in unemployment to a two-and-a-half-year high, but have reversed course after overshooting. Nasdaq 100 futures
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opened limit down and have rallied 100.00 off lows.Â
S&P futures
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adding over 30 handles. These financial contracts have changed course due to the
belief that the jump in employment will force the Fed to stay on the offensive
to stimulate the economy by cutting rates as much as 50-basis-points at their
upcoming monetary policy meeting.
Federal Funds futures
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PowerRating) rallied to a contract
high, pricing in a full 50-basis-point cut for the May 15 FOMC meeting. The FFM
has pulled back to price in an 84% chance of a half-point cut.Â
Unleaded gasoline
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PowerRating)
is trading at a contract high, up .0099 at 1.0810. Its star Doji formation
leaves it vulnerable to a sell-off at this level. A move below 1.0790 triggers a
Turtle Soup reversal.