Trader on the New York Wall Street. The market players are hoping for the data from the U.S. labor market. Source: AP
HB NEW YORK. The number of employees rose in March as strong than it has been three years. This should encourage many investors in their hope for a strengthening of the economic recovery and could lead to a continuation of the recent rally. Analysts expect that the leading index is hoisted on Monday – which is not a holiday in the U.S. – through the psychologically important mark of 11 000 points. In addition, moves on 12 April reporting season starting more and more into focus. Analysts expect overall with good numbers. Many Investors will therefore be positioned in advance and might of Wall Street so give an additional boost.
The shortened Holy Week ended the U.S. stock markets on Thursday with gains, the Dow Jones index of the default values presented to 0,7 percentage points to 10 927. The broader S & P 500 rose also by 0.7 percent to 1178 points. The index of technology exchange Nasdaq increased by 0.2 percent to 2402 points. The S & P ended with the fourth quarter in a row from surcharges. March was for the index with a gain of 5.9 percent even the best month since last July. Since his twelve-year low on 9 March 2009 has increased the S & P to 74 percent.
According to the Ministry of Labour last month created 162 000 new jobs. That was only the third digit growth since the start of the recession in late 2007 and the largest since March 2007. The bulk of new jobs created by private companies. This suggests that the economy is gaining support and requires less state support. "Things have improved. There is no doubt," said the trader Alan Valdes of Kabrik Trading. The figures were reflected not yet reflected in the rates, as markets remained closed on Good Friday. According to the futures mark a strong start.
The labor market data with a special focus, as in the coming week relatively little economic data provide an indication of whether the recovery strengthens further. Highlights on Monday, the ISM purchasing managers index for March and data services for sale of existing homes. On Tuesday, Fed Chairman Ben Bernanke speaks before the Chamber of Commerce of Dallas. Investors will pay close attention to whether he will give any clues to the Fed’s plans to withdraw from their economic activities.
Balance sheets, budgets, budgets
Analysts for Thomson-Reuters data assume that the profits of companies in the S & P 500 in the first quarter rose by 36.3 percent. This is slightly less than the January forecast growth rate of 37.2 percent, significantly lower than the 51.2 percent in October. Analysts have now a more realistic look at the balance sheet season, but praised the equity strategist Scott Wren from Wells Fargo Advisors. The launch of the earnings-round is on 12 April usual, as the Dow companies Alcoa. So far, 70 companies from the S & P negative pre-announcements issued and 55 positive.