The bulls could not have asked for a better jobs report this morning. Payroll numbers were nicely ahead of estimates and the unemployment rate was around a 50 year low. There even was an increase in average hours worked, but there is still no signs of inflation as wages increased 0.2% versus expectations of 0.4%.
This data undermines arguments about a slowing economy but it causes the bears to wonder if things are so great then why is it still expected that the Fed will cut rates later this year? Isn't it inconsistent for the Fed to be so dovish when the economic news looks so good?
Not only is the Fed dovish but Trump keeps talking about the Fed not being dovish enough. None of this seems very logical but the market doesn't seem to worry. I'll let the economists and big picture bears argue over this stuff. What I know - without any doubt - is that the price action is quite good. The indices are chugging along, breadth is quite good with around 5100 gainers to 1900 decliners.
One slight negative is that the number of new highs is under 200 which illustrates some reluctance to chase strong momentum. After the hit that software and cloud stocks took, the buyers of new highs have relented a bit which isn't all bad given how some of the names have become extended.
I have better action on my screens today in individual names with Intelsat (I) regaining momentum after some political problems and Zynerba (ZYNE) , which I highlighted on Tuesday, up once again on strong volume. I added to a position in pharmaceutical pot play, Corbus (CRBP) and may add to that further.
Overall there is generally good action on my screens today. If you are looking for a negative about the only thing I can think of right now is that the bulls seem to be very complacent.