U.S. stocks and exchange traded funds (ETFs) had mixed reactions to news that employment numbers are improving.
The ADP National Employment Report stated that private sector employment fell by 491,000 in April, a huge improvement from the 708,000 jobs lost in March. This report has been utilized by investors to predict the future state of the economy.
As the report indicates signs of improvement, investors become optimistic about the overall state of the economy and forget about other negative news, states Sara Lepro of the Associated Press. To add icing to the cake, the report indicated that job losses are expected to increase, but at a slower rate than previously expected.
More drowning news continues to hit the financial sector. In reports by The New York Times and The Wall Street Journal, it is expected that Bank of America (BAC) will need to raise nearly $34 billion in capital based on results from the federal government stress tests, states Stephen Bernanrd of the Associated Press. Despite this news, the Financial Select SPDR (XLF) was up nearly 4% in intraday trading.
Black gold hit a new high for 2009. Benchmark crude oil for June delivery was trading at $55.26/barrel on the New York Mercantile Exchange. This surge is despite reports indicating that levels of crude oil in storage are at 19-year highs. United States Oil (USO), jumped nearly 3% in morning trading, despite being down about 9% for the year.
Good news has come Chrsyler LLC’s way. The judge overseeing the automaker’s bankruptcy took a huge leap forward allowing the sale of parts of Chrysler to Italian automaker Fiat by approving the bidding process advocated by the company and President Barack Obama. If executed correctly and implemented properly, this could prevent Chrysler from completely dissolving.
The Dow Jones Industrial Average gained 0.2% , the S&P 500 was up 0.3% and the NASDAQ dropped nearly 0.9% in morning trading.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.