What Will It Take To Get The Bull Back On Track?

January 13, 2025 10:30:00 am

Source: SeekingAlpha

2025-01-13 10:30:00 ET

Summary

This week’s headline news event was the Friday jobs report, and everybody knew it. However, it isn’t really the employment number that’s driving the current market in the short or intermediate term.
The stronger-than-expected employment data gets translated into expectations that there will be continued upward pressure on inflation and interest rates. Additionally, it will be less likely that the Fed will continue to cut rates in the near term.
Right now, that expectation pushes long bonds lower (rates higher) and pressures stocks to move lower.
Earnings season will get underway in a few weeks, and if there is one thing that can bring the bulls into a market, it’s good earnings and optimistic earnings guidance.

By Geoff Bysshe

This week’s headline news event was the Friday jobs report, and everybody knew it.

However, it isn’t really the employment number that’s driving the current market in the short or intermediate term. Most market participants know this too....