US stock futures are ripping before the open after a better-than-expected jobs report. The headline number of 165,000 non-farm payrolls added topped the estimated 150,000, but it was the meaty upward revisions for February and March that really has the market buzzing. With today's beat and the upward revisions, 125,000 additional jobs were created in the last three months than previously accounted for. All was not rosy in the jobs report, though. Labor market participation, at 63.3%, does remain at its lowest levels since the late 70s.
Today' strong jobs report reverses a recent trend of weak economic data. The previous jobs report came in well below expectations (but was revised up today), the recent GDP reading was abysmal and estimates for next quarter's GDP growth even more concerning, and Wednesday's ISM confirmed that manufacturing growth is decelerating. World central banks have been largely driving bullishness in the market at these upper level, with the ECB adding additional fuel with yesterday's interest rate cut.
After a big gap up, especially one to new all-time highs, we like to see how the gap is treated. Is there a round of profit taking that sends the indices back into the gap, or does another wave of buyers step in to make it a gap-and-go? The answer to that question will go a long way towards establishing what the price action in next few weeks in the market will look like.
*DISCLOSURES: No relevant positions