Reply To: Traders Market Weekly: A Magical Green First Quarter for Stocks


The headlines from the March employment report were all good economically speaking.

Nonfarm payrolls increased by 303,000, the unemployment rate dipped to 3.8%, average hourly earnings were up 0.3%, and the average workweek increased to 34.4 hours.

The key takeaway from the report is that it continued to support a solid earnings growth outlook even if it didn’t necessarily support the outlook for the Fed to cut rates soon.

Nonfarm payrolls increased by 303,000 in March (consensus 200,000) following a revised increase of 270,000 in February (from 275,000). Nonfarm private payrolls rose by 232,000 in March (consensus 160,000) following a revised increase of 207,000 in February (from 223,000).
The unemployment rate fell to 3.8% in March (consensus 3.8%) from 3.9% in February.
Average hourly earnings increased by 0.3% in March (consensus 0.3%) following a revised 0.2% increase in February (from 0.1%). The average workweek rose to 34.4 hours in March (consensus 34.3) from 34.3 hours in February.

Treasury yields moved higher in response.

The 10-yr note yield moved from 4.32% to 4.39% after the data.
The 2-yr note yield moved from 4.66% to 4.71%.