OptionEye - Macro Outlook - May 7th
Overnight saw grains mixed with corn down 2, beans up 2 and wheat up 1 as we approach next week's WASDE report. I don't expect much from the report at this time of year but the wheat info could get interesting.
The dollar has been weaker as of late and this morning is fairly stable at 94.20 up .12.
Stocks are easier again this morning as Janet Yellen (intentionally so I believe) tried to take the air out of the equity bubble yesterday letting slip that she thought things were getting a little over valued. That had some investors running for the door. Much has been made about her comments and they are being likened to the 1996 comments from Alan Greenspan about 'irrational exuberance". However, I think this time is totally different and this could be something fairly important. Be cautious over in equity land.
Oil has sold off from yesterday's highs and sits at $60.93 which is unchanged. Gold is lower by $9.38 to $1182.84.
The 10 year yield is at 2.23% and has been on a technical tear as of late to the upside. Algos and technicals with European yields rising has that market in a bit of a frenzy. Watch the yield after tomorrow's Non-Farm Jobs info. If the number is strong the rate hike rhetoric will heat up, if it is weak we will see that 10 year yield soften considerably.
We get Initial Jobless Claims today as we get ready for tomorrows numbers.