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PLUNGING BOND YIELDS BOOST FINANCIAL SHARES

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WEAK JOBS REPORT A MIXED BLESSING ... Today's weak job report was a shocker. It's weakness, however, is a mixed blessing. It's a potential negative for the economy since it erodes consumer confidence. At the same time, its negative economic message pushed bond yields sharply lower. Lower interest rates are good for the economy. That's probably why the stock market recovered today led by rate-sensitive stocks. But there's more. Lower interest rates keep the dollar weak. A weak dollar is bullish for commodity markets. That was seen in today's jump in most commodities. In the past, higher commodity prices have produced higher interest rates which helped stall commodity rallies. This time does seem to be different, which suggests that global deflationary pressures may still be at work. The bottom line is that the stock market doesn't have to worry about rising rates anytime soon. That should be a good thing. It should also be a good thing for commodity investments. 

Chip Anderson
About the author: is the founder and president of StockCharts.com. He founded the company after working as a Windows developer and corporate consultant at Microsoft from 1987 to 1997. Since 1999, Chip has guided the growth and development of StockCharts.com into a trusted financial enterprise and highly-valued resource in the industry. In this blog, Chip shares his tips and tricks on how to maximize the tools and resources available at StockCharts.com, and provides updates about new features or additions to the site. Learn More
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