US Federal Reserve

While the BLS' JOLTs report usually gets a B-grade in terms of importance due to its one-month delayed look back (we just got the  January report which is one month behind the most recent payrolls number) it serves an important function due to its breakdown of various labor components such a job openings, new hires, separations, quits and terminations, all of which make up Janet Yellen's "labor dashboard." In fact, according to Yellen herself, the JOLTs data is as important, if not more so, than the BLS report.

It's March Madness in Philly. Thanks to the biggest jump in New Orders since Oct 2005, Philly Fed surged to 15-month highs (jumping from -2.8 to +12.4) crushiung expectations of -1.5. Number of employees improved mopdestly but remains in contraction but "hope" soared to 5 month highs led by exuberant expectations for capex and average workweek. Do you believe in miracles?

In a note that may have been quite prescient, BofA's HY strategist Michael Contopoulos released a note last night titled "Fed acknowledges global growth concerns… again", in which he said that "we have to admit; today’s dovish comments by Yellen took us by surprise" and adds that "although the market’s initial reaction was positive, we think the longer run impact of a very dovish message is bad for risk assets. In fact, we’re a bit amazed by the initial response from high yield today."

• Global Stocks Slip Following Fed’s Cautious Tone (WSJ)
• Oil rallies towards $41, near 2016 high, on producer meeting (Reuters)
• Hamptons luxury home sales soften as Wall Street weakness takes a toll (Reuters)
• Obama picks centrist high court nominee; Republicans unmoved (Reuters)
• Allies See Challenges for Hillary Clinton in a General Election Campaign (WSJ)
• China’s Looming Currency Crisis (WSJ)
• China's biggest metals trader under pressure to cut staff amid reforms (BBG)

Yesterday when summarizing the Fed's action we said that in its latest dovish announcement which has sent the USD to a five month low, the Fed clearly sided with China which desperately want a stronger dollar to which it is pegged (reflected promptly in the Yuan's stronger fixing overnight) at the expense of Europe and Japan, both of which want the USD weaker.

ECB, BOJ don't want a weak dollar; China does not want a strong dollarFed sides with China for now

— zerohedge (@zerohedge) March 16, 2016