Editor's Note: This article was originally published in John Murphy's Market Message on Friday, May 3rd at 1:34pm ET.
A surprisingly strong jobs report this morning has given stocks a big boost today. All major indexes are having a strong day with the Nasdaq and small caps in the lead (more on that shortly). Transports are also have an especially strong day which is another positive sign. All eleven stocks sectors are in the black led by energy, cyclicials, financials, and industrials. Weaker sectors include more defensive utilities and REITS. Emerging markets are leading foreign stocks higher, with Chinese stocks in the lead. Bond yields are pulling back today. Chart 1 shows the S&P 500 bouncing off its 20-day average (green line) which puts it in position to regain its record move over its September high at 2940.
Chart 1
