Monday, April 09, 2007

Monday Morning Musings

Back in the saddle after the long weekend. Friday's jobs report was stronger than expected (180k vs. 130k), which is causing a big spike in bond yields today. The yield on the 10-year is 7 basis points higher to 4.74%, but still below January's highs.

The flip side is that for many investors who were worried about a big dropoff in economic activity, the stronger jobs report speaks to the resiliency of this economy. This is likely why the markets aren't selling off very much, and opened to the upside.

BNI is up +7% on the news that Warren Buffet acquired a big stake in the company. And this is spurring buying interest in the whole group, and pushing the transport index back above its 50-day average.

There is also chatter about an offer for Dow Chemical (DOW) for $50 billion, which would be the biggest LBO ever. The stock is up +6% on the rumors.

Asian markets were up strongly overnight, while the Yen is slightly lower again. And oil is also falling, hitting $63.65 this morning. These two factors are slight positives for investor sentiment.


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