Today looks to be another good day for stocks. The market has almost made back everything it lost during the nasty two-day downturn of last Friday and Monday.
The bad economic news this morning was the jobless claims report. Jobless claims rose 12,000 last week to 669,000. This is bad but we knew it was coming. The major report will be tomorrow’s employment report for March, and I’m expecting more bad news.
The good news is that the European Central Bank cut rates by 0.25% to bring rates down to 1.25%. That’s a record low. This will hurt the dollar and that’s why our investment strategy continues to focus on areas that will benefit from a weak dollar like large multinationals and commodity stocks.