US stocks rally yet again, with the Dow logging its eighth gain in the past 10 sessions, as investors seize upon signs of improvement in the jobs market.
DJIA jumps 72 (0.6%) to 12351, within hailing distance of its year high; S&P 500 rises 9 (0.7%) to 1328, Nasdaq Comp gains 20 (0.7%) to 2777. NYSE volume again low. Stocks may have run into technical resistance, with the 1330-area a resistance level for the S&P 500. Still, the three major indexes have all risen for the eight of the past 10 sessions, and the S&P’s two smaller indexes, the 600 smallcap and 400 midcap, are faring even better. The former is at its highest since October 2007, and the latter is at its highest ever.
Also, the Russell 2000 is 15 points away from its all-time high from July 2007. Are we feeling bubbly yet?
ADP pegs March jobs growth at 201,000, and while this report can diverge sharply from official government numbers, it’s enough to get the market excited — and it’s in a pretty excitable mood anyway these days. Of course, the big report comes Friday from Uncle Sam, and of course, that big report will be revised next month, and revised again, and revised again in a year.
But data points always provide a trading opportunity for the market, no matter the bigger picture. What the economy needs more than one data point is a sustained level of both job and wage growth. When you see those two things on a sustained basis, you can start to talk about having some real confidence in the economy.