New York Report: Bullish market backed by US jobs rebound
STRONGER-than-expected payrolls figures on Friday did more than ease concerns about US economic fundamentals – they also seemed to justify Wall Street’s record levels, suggesting the market’s uptrend could continue.
February’s jobs report followed two straight months of payrolls reports that were sharply below expectations, and the rebound reinforced the theory that weakness in December and January was temporary, related to weather rather than worsening fundamentals.
That bet has helped equities shrug off bearish data and geopolitical uncertainties in Ukraine, taking the S&P 500 to a series of record highs. However, it also raised concerns that the market may be vulnerable to pullbacks.
Wall Street has marched steadily higher this year, save for a pullback in late January that came on concerns about emerging markets. Those worries will remain prominent after Russian President Vladimir Putin rebuffed a warning from US President Barack Obama over Moscow’s military intervention in Ukraine’s Crimea region. Obama has ordered sanctions against Russia in the most serious confrontation since the Cold War.
Only two S&P 500 components, Urban Outfitters and Dollar General, are scheduled to report quarterly results. Economic indicators include February retail sales, seen rising 0.2 per cent, and a preliminary read on March consumer sentiment from the Thomson Reuters/University of Michigan Surveys of Consumers, which is expected to edge up from February.