Higher Oil, Jobs Report Spur Selling In Stocks

The market is lower in early trading after oil prices are on the rise again, and an in-line jobs report prompts selling.

The nonfarm payrolls report for February increased 192,000, slightly better than the 185,000 forecast. But a strong number was already anticipated as evidenced by yesterday's strong buying surge. The unemployment rate fell to 8.9%, more than expected.

The dollar is weak again, which is boosting commodities. Oil prices hit a 2-year high earlier this morning, and are back above $103 currently. Gold prices are also higher to $1429 today.

Overnight action in Asia was strong. The 10-year yield is lower at 3.51%; and the VIX is up 2% right at 19.0 currently.

Other than the big jobs report, there is not a ton of market moving news to report. That means that oil will likely be the focus of traders today, and as long as it remains high, stocks could be under pressure.

Trading comment: Yesterday's action showed surprising strength, and several market leading stocks broke out to new highs. The news out of the Mideast is mixed, and oil is moving higher. This remains a wildcard for the market, at the margin, and bears monitoring. If oil moves higher, it would seem a fairly formidable headwind for the market. But if things settle down, the market could easily regain its footing. Guess we need to stay on our toes.