Few More Positive Signs

Positions
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+100 GS @ 108.34 vs. cost @ 74.79
+2000 UYG @ 2.63 vs. cost @ 2.00

Markets
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Markets rushed to quick 1.5% losses as labor market woes dominated headlines. Prior to the open, the ADP private labor market report showed an expected loss of 742,000 jobs for March - greater than expected. This indicator, intended to be a harbinger of the official Nonfarm Payrolls report, has mixed predictive ability. Futures were off more than 1% at the open in coincidence with weaker European stocks.

Trio of Positive Economic Data
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March ISM Manufacturing: 36.3 vs. 36 consensus, prior 35.8 (Less than 50 is contracting)
February Construction Spending (MoM): -0.9% vs. -1.9%, prior -3.5
February Pending Home Sales: 2.1% vs. 0.0%, prior -7.7%

The picture is far from rosy, but improvement in capital spending and some signs of life in the housing market turned the markets around in a hurry. The employment picture is weak - ok that's a gross understatement. Home builders aren't likely to be going on many caviar packed corporate retreats in Dubai either. However, manufacturing and the housing markets (except builders) have shown tentative signs of improving. Any positives are good for the markets, but a trio? Let's see if this abrupt turnaround today has any staying power. Financials rallying again today in advance of tomorrows meeting with the FASB (Financial Accounting Standards Board) to discuss easing of rules regarding valuation of illiquid securities.

Live from Queens
Keep the left arm straight and think happy thoughts

TM