Opening Look: Jobs Report Looks Just Right

The market is down slightly in early trading, but that is not all that suprising given the 2-day surge we just had.

The payrolls report showed an increase of 94,000 jobs (vs. 77k consensus). While this is not a very robust number, it does show that job growth is still occurring, and that lowers the odds of a near-term recession considerably.

This is a big positive, because if recession fears fade, it should bolster consumer confidence. And job growth is key. You can see the big sigh of relief in the yield on the 10-year Treasury Note. It has gapped higher today, all the way back to 4.11%, and looks to have reversed its recent downtrend.

Asian markets were mostly higher overnight, except Hong Kong which fell on profit taking. The Yen is lower again today, a good sign, as is the volatility index. And the put/call ratio opened very high, which should support stocks today.