Bad news, good for equities, meh for bonds

Sorry for the late post.

A host of economic news came out this morning, much of it mixed with some downside worry, but equity markets moved higher on the plan “that bad news is good news.”

The September ADP jobs number came in light of expectations, which could see a weaker than forecast Labor number on Friday.

The ISM Services number surprised the market with a huge jump, which some analysts reported only has happen two other times in 1998 and 2008 and portends a recession occurring soon after the report.

US treasuries are selling off hard on this mornings news, which is always my bellwether over stocks due to the depth of the bond market.


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