T3 Live

Coffee With Greta: Choppy Market


DJIA Futures: -312 (-0.8%)

SPX Futures: -37 (-0.7%)

NASDAQ Futures: -162 (-0.9%)

Good morning friends!

Futures are falling as the down start to Q2 continues.

Let’s get right to it!

Waiting On Jobs Data

Key labor market data will begin today as traders look to assess the Fed’s plans for rate cuts. 

The Labor Department releases its February job opening and labor turnover survey (JOLTS) at 10:00 a.m. ET. 

That survey is expected to show the number of available jobs fell slightly to 8.8 million from 8.9 million in January. 

This comes ahead of ADP’s private employment report for March Wednesday morning and the official March jobs report on Friday. 

The jobs report is expected to show job growth slowed to 200,000 new jobs last month with the unemployment rate ticking down to 3.8% from 3.9%. 

Focus will be on wage growth in that report as the market looks for continued signs of slowing inflation. 

Rates Rise

U.S. Treasury yields are rising this morning as traders dial back their expectations for the Fed to cut rates in June. 

The 10-year yield is up seven basis points at 4.39% while the 2-year yield is up two basis points at 4.73%.

Stronger than expected data on the manufacturing sector seemed to spook traders on Monday. 

ISM’s manufacturing index rose to 50.3 in March from 47.8 in February vs 48.1 expected. 

It was the first reading to signal an expansion in the sector in 17 months. 

CME Group’s FedWatch Tool currently shows about 57% of traders expecting a June rate cut, down from about 70% a week ago.

Oil Prices Climb

Oil prices are trading at the highest level since October amid escalating tensions in the Middle East and between Ukraine and Russia. 

West Texas Intermediate crude futures are up 1.5% at just under $85 bbl while Brent crude futures are 1.3% higher at $88.50 bbl. 

Iran blamed Israel for an airstrike on Monday on its consulate in Damascus, Syria that reportedly killed seven of its officers and pledged to take revenge for that attack today.

Ukraine meantime struck one of Russia’s largest oil refineries with a drone attack but the leader of the region said, “There is no serious damage, the technological process of the enterprises is not disrupted.”

U.S. gas prices have been on the rise as oil prices jump. 

AAA shows the national average is at $3.535 per gallon as of today, up from $3.338 a month ago.

Leave a Comment: