Morning Market Comment

With this sinusitis making it feel like someone pushed a thumb tack into my face just below the right eye, I arrived late to my home office - at 8:31. I didn't even have to look at the news ticker, just the S&P futures - up more than 5 at that moment - to know the employment numbers were to the liking of Wall Street: U.S. nonfarm payrolls up 157,000 in May. This is a pretty cool world in which we live when if you consider that if we had official inflation figures that showed a true rate at a more realistic 8 to 10% that GDP would technically had contracted, yet we have close to full employment. So, with S&P futures up, it looks as if the effort continues toward my target of 1550 (old intraday S&P high). Put to call ratio look favorable and so does the ISEE, but beware the continued deterioration in the bond market where firm economic data is seen as lessening the chances of a Fed easing later in the year. The 10 year note is 2-ticks lower with the yield at 4.902. A wary eye should be kept on China for any further suprises but it appears that the powers that be are trying to quickly stamp out this nasty rumor: China has no plans to tax capital gains in near future - report