Tuesday | March 9, 2010

Bond yields are lower, stocks are moving up, and commodities are selling off across the board in early trading.

Looking at economic releases, the National Federal Independent Businesses’ Small Business Optimism Index fell to 88.0 vs. 90.0 expected and 89.3 prior.  A lack of credit and the looming threat of healthcare reform are two of the biggest obstacles they currently face.  Over one-third said sales are too weak for them to expand at the current moment.

Manpower’s Second Quarter Employment Outlook showed that a net 5% of employers predict they will hire during April-June, down from the first quarter’s 6% expectations.  Year ago levels were far worse, down -2%.

Retail sales showed a vast improvement.  Redbook’s Chain Store Sales figures had store sales doubling to +3.1% year-over-year vs. the prior +1.5%.  The International Council of Shopping Centers reported that week-over-week store sales were +2.9% vs. -0.8% prior and +3.4% year-over-year vs. +0.7% prior.

Treasury yields at 10:40 a.m. EST were as follows:  2-year note .87%; 5-year note 2.33%, 10-year note 3.69%, and the 30-year bond 4.67%.