WEDNESDAY 4/2/14; ADP Jobs Report

The dollar/yen continues higher to 103.90, teasing towards 104, so the weaker yen sends global equities higher. Japan targets 1.5% inflation for next year which will approach the 2% goal. The NIKK finishes up +1% but was higher during the session. China markets are up about +0.5%. The Chinese property sector and copper boost stocks. Overall, Asia ends slightly higher across the board. Copper is up over +2% bouncing strongly due to the Chile earthquake. Chile is the world’s largest copper-producing country providing one-third of the global copper supply. Peru is a large producer as well and concern grows that the mines and ports may be damaged from the earthquake which will slow copper production so price bounces. The BSE prints record highs day after day now at 22551 bouncing another +0.5%. Traders are tripping over each other to invest in India.

JPM blocks a small 5K payment to the Russian Embassy due to sanctions. The World Bank says Crimea has eroded confidence in the Russian economy. Russia accuses NATO of using language from the cold war after NATO says the Russia situation is “incredibly concerning” and Putin has forces available to invade Ukraine in only a few days time. Europe and US agree to unify and provide a plan to decrease Europe’s dependence on Russia’s oil and gas. Protests grow in Turkey over the rigged Erdogan election.

Lufthansa airline pilots call a 3-day strike creating transportation hassles. Spain’s unemployment numbers improve slightly. The euro sits at 1.38 as traders contemplate Draghi’s ECB Rate Decision and potential stimulus program announcement tomorrow. In general, European stocks are higher for the seventh consecutive session. Greece is up +0.8% and up over +16% this year. The Greece 10-year bond is now down to 6.19% far below the wildly higher yields during the peak of the financial crisis a year or two ago. Spain and Italy buck the happy trend finishing down -0.4% and -1.1%, respectively. UK house prices are up almost 10% over the last year.

The 10-year yield is 2.77% climbing higher as futures move higher. Chrysler recalls jeeps due to corrosion in the brake systems. The automobile recalls continue at an obscene pace. High-frequency trading IPO Virtu delays its market debut due to the publicity over Michael Lewis’s “Flash Boys” book. Discussions continue across the financial industry about whether the markets are rigged, or not. Of course they are. Insider trading occurs daily across Wall Street. As comedian George Carlin said, “It’s a big club, and you ain’t in it.” GS announces plans to sell its market making location at the NYSE trading floor....




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After the bell, PLUG charges +4.3% higher in AH trading on news the company is buying fuel cell maker Relion for $4 million. This is the deal prematurely announced last week that already created a bounce in the stock. IRBT is up +1.5% after announcing a $50 million buyback. Buybacks goose the stock market higher making the rich richer but doing nothing for the poor soul that is looking for a job. Juniper plans to cut 6% of its workforce. JNPR surprisingly drops -0.4% since a bounce would be expected when employees are axed. Companies will perform the same amount of work, or produce the same amount of widgets, with less people so firings are bullish. Remaining employees tend to work harder and become more productive since they do not want to be drop-kicked across the parking lot next.

Traders are bulled up anticipating stimulus from the ECB in the morning. ECB’s Draghi is feeling the weight of the world economy on his shoulders this evening. The central bankers control the markets. The early consensus on the Monthly Jobs Report is 200K and higher. Several traders are proclaiming 250K jobs are coming on Friday morning. A shooting occurs at the Fort Hood military base in Texas, with several people injured and a search for the shooter ongoing. Complacency remains in the markets with the CPC put/call ratio collapsing to 0.66.