Thursday, February 4, 2010

Jobs Data and Eurozone Debt Dampen Sentiment

The equity markets are solidly below the flatline in late-morning action on the heels of a disappointing report on the US job market ahead of tomorrow's key labor report, and amid growing concerns about the health of sovereign debt in the Eurozone. Making matters worse for the equity markets, Target is dampening some enthusiasm from a plethora of mostly better-than-expected retail same-store sales reports for January, by missing the Street's expectations. In other equity news, Visa topped profit projections, while MasterCard missed, and Yum Brands posted better-than-expected 4Q results. Treasuries remain solidly higher amid the debt concerns in Europe and after the disappointing jobs report. In other economic news, 4Q nonfarm productivity posted a smaller-than-expected increase and factory orders rose more than expected. Overseas, markets are lower, as Europe is reacting to monetary policy announcements from the Bank of England and the European Central Bank, while grappling with the aforementioned debt worries.

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