Keep your eye on chip and bank stocks Wednesday after Intel and Ally Financial, respectively, each received downgrades.
The Dow is flat and the Nasdaq is down a bit premarket ahead of an OPEC meeting and more scheduled Federal Reserve speakers, including Chair Jerome Powell at 12:10 p.m. ET.
The latest ADP nonfarm employment change showed 184,000 jobs were added in March versus estimates of 150,000, which is not good news for people hoping for a rate cut after the biggest jump in hiring since July.
I don’t believe this report is particularly accurate, especially over the last 15 sessions or so, so I don’t know if it’s really worth paying attention to in terms of what it says.
We’ll learn more on Friday with the Employment Situation report — this will tell us average hourly earnings and the unemployment rate.
The bond market (TLT), meanwhile, crapped out on Tuesday… But, I don’t believe it’s going to go off a cliff. The bond market going lower tells us rates are going to go higher — which is why stocks fell hard Tuesday.
So there’s a big, big disconnect in the market right now, BUT, the bond market has been wrong more this year than I’ve ever seen. So I don’t know how meaningful it is…
I’ll cover all that and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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P.S. See My Most Shocking Q2 Predictions Later Today!
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