US and European equities are on a tear higher this morning after the very good US April jobs report, while bond yields are notably lower after several days of very choppy trading. The UST 10-year yield has tumbled six basis points to 2.121, while the 10-year bund is well off the highs seen yesterday. As of writing, the DJIA is up 1.46%, the S&P500 is up 1.23% and the Nasdaq is up 1.26%. European indices are up more than 2% a piece.

The April jobs report showed the US labor market bounced back firmly from the anemic March results, weak April ADP nubmers notwithstanding. The April non-farm payrolls rose to 228K, while the March figure was slashed to 86K from 126K. Unemployment fell to 5.4% from 5.5% in March. Hourly earnings fell slightly, raising worries that wage pressures were not sufficient to deliver much more economic growth. The biggest jobs growth was in white-collar and healthcare sectors, construction saw modest gains, while manufacturing was flat. ...

New therapies - which could generate tens of billions of dollars in annual sales for drugmakers - involving the use of 'CAR T cells' can eliminate blood cancers such as leukemia and lymphoma in 40% to 90% of patients may have to be genetically modified to include a switch that shields healthy cells from attack.

CAR T cells are white blood cells taken from the body and genetically modified to have the cancer-spotting traits of antibodies. These cells can circulate inside a person for years or even during their lifetime, relentlessly seeking out cancerous growth. Most CAR T cells target a protein or antigen called CD19 found on the surface of B-cells, a type of white blood cell associated with blood cancers. ...

Yesterday's remarks by Fed Chair Yellen that equity market valuations are "quite high" continues to echo through markets, as analysts compare it to her call on biotech valuations a year ago as well as Alan Greenspan's notorious "irrational exuberance" remarks. Equities have been choppy, but the slide seen over the last three sessions is not resuming for now. As of writing, the DJIA, S&P500 and the Nasdaq are flat on the session.

European bond yields had a serious hiccup earlier today, with the yield on the German 10-year Bund surging by as much as 21 bps to 0.80% (its highest level since last November) before easing back below 0.60%. Interestingly, peripheral yields saw weaker gains and have come in significantly as buyers step in. There was no apparent proximate cause for the spike, besides a general lack of liquidity. Some analysts highlighted Poland cancelling a t-bill sale (citing higher yields). The euro has given up gains, sinking from 1.1390 as low as 1.1240 after the US cash open. ...

High stock valuations could pose potential dangers, per Chair of the Board of Governors of the Federal Reserve System, Janet Yellen on Wednesday. She added that stability risks across the U.S. financial system remain in check amidst the run up stock prices.

Fed Chief Yellen said, "I would highlight that equity market valuations at this point generally are quite high. There are potential dangers there."

The answer from Yellen, was in response to a question from Christine Lagarde, Managing Director for the International Monetary Fund (IMF), who joined her for the opening session of the "Finance and Society" conference. ...

Equity trading has been choppy this morning as participants respond to the big miss in the April ADP report. In addition, the bond sell-off continues, with the 10-year UST yield up another four basis points to 2.225% and the 10-year bund yield up seven bps to 0.585%. As of writing, the DJIA is down 0.38%, the S&P500 is down 0.21% and the Nasdaq is off 0.23%.

Today's April ADP report bodes ill for Friday's April US jobs report. The ADP numbers missed expectations and fell to their lowest level since January of 2014. Virtually all the job gains were in small and medium-sized businesses, and were almost all in the service sector, with manufacturing losing a small number of jobs. Meanwhile, Q1 productivity fell by a 1.9% annual pace, resulting in the first back-to-back drop since 2006. Analysts suggest this reflects businesses rapidly adding more employees. The greenback lost ground sharply in the wake of the data, with EUR/USD shooting above 1.1360 from 1.1230 before the report. ...

The U.S. Commerce Department reported on Tuesday, the U.S. trade deficit surged higher by 43.1% - the largest percentage increase since December 1996 - to $51.4 billion in March, striking the largest trade deficit since October 2008. March's trade gap was far larger than the $45.2 billion deficit the government assumed in its snapshot of Q1 2015 gross domestic product (GDP) last week.

During March, a surge in imports lifted the U.S. trade deficit to its highest level seen in nearly 6 1/2 years or during 2008-2009. The surge suggests the economy contracted during Q1 2015. ...

Sovereign bond yields keep moving higher this morning, with the 10-year UST yield momentarily testing above 2.2% in the wake of the ISM services data (it's back around 2.18% as of writing, while the 100-day MA is around 2.19). The 10-year bund rose back above 0.50%. Stocks are taking it on the chin, with the DJIA down 0.46%, the S&P500 is off 0.86% and the Nasdaq is down 1.16%.

The bond selloff really heated up again this morning. While the US trade data was distorted by the ports strike, the ISM services reading was unambiguously positive, with strong showings in the new orders and employment components. European yields are also shooting higher, with Greece headlines the probable source of selling pressure. Midway through the European session, EU Working Group Chief Wieser warned there would not be a deal at May 11's Eurogroup meeting. Greek, Spanish and Italian yields soared on the comments, while the DAX, CAC and FTSE slumped. ...

A scientist reported on Friday, about 300 miles off the coast of Oregon, an undersea volcano named "Axial Seamount" has been spewing lava over the previous seven days. The active undersea volcano confirms researchers forecasts made during the fall of 2014 that their unique insight into a hidden ocean hot spot was correct.

Oregon State University geologist Bill Chadwick said on Friday that the volcanoes location is along the axis of an underwater mountain ridge. Axial Seamount - whose peak is about 4,900 feet (1,500 meters) below the ocean surface - has been known to erupt at least twice before in 1998 and 2011, however those eruptions were detected months or years afterward. ...

US and European markets are seeing modest gains this morning in lower-than-average trading volume. In Europe, the glimmers of hope about Greece negotiations last week have grown into some real green shoots, helping to send sovereign yields higher. As of writing, the DJIA is up 0.34%, the S&P500 is up 0.37% and the Nasdaq is up 0.39%.

Comcast's first-quarter results were above par, while Cablevision was more or less in line with expectations. Comcast hit an important milestone, as subscribers for internet service now outnumber cable TV subscribers, although the crossover apparently was in April, after the end of the quarter. Cablevision's numbers were not great, and total customers were lower y/y. Operating income was lower y/y. Shares of CVC and CMCSA are up slightly. MGM is among the most notable earnings losers, with shares down more than 11% on rough going in Macau. ...

While 84 year old George Soros says the rich should pay more taxes, he seems to be the king at deferring them. Tax deferral is known to be a key source to Soros massive wealth. Using a loophole that allowed Soros to defer taxes on fees paid by clients and reinvest them in his fund, where they continued to grow tax-free, Soros has built a record as one of the world’s greatest investors.

In 2008, U.S. Congress closed a loophole used by Soros and others that ordered hedge fund managers who used it to pay the accumulated taxes by 2017. Just before Congress closed the loophole, Soros transferred assets to Ireland, a country seen as a possible refuge from the U.S. tax law.

According to Irish regulatory filings, Soros Fund Management had accumulated $13.3 billion through the use of tax deferrals at the end of 2013. ...

While the selloff in European bonds seems to have moderated this morning, US yields are still moving up on some mixed data reports. The 10-year UST yield has moved up more than seven basis points to trade above 2.01% for the first time since early March. As of writing, the DJIA is up 0.72%, the S&P500 is up 0.61% and Nasdaq is up 0.70%.

The headline ISM manufacturing index failed to rebound as expected in April, remaining flat with the March reading. However there was notable improvement in the production and new orders indexes, both of which rose by roughly two points each. The March Construction Spending report was softer than expected. EUR/USD had moved up to 1.1290 through the US cash open, however the pair turned around after it failed to take out 1.3000. ...

On Thursday, the U.S. Labor Department reported initial jobless claims for state unemployment benefits fell 34,000 to a seasonally adjusted 262,000 for the week ended April 25, striking the lowest reading in 15 years since April 2000.

Jobless data suggests moderation in job growth during March was likely an aberration as claims remained below 300,000 for the eighth consecutive week.

Considered a better measure of labor market trends as it irons out week-to-week volatility, the four-week moving average of claims fell 1,250 last week to 283,750.

The U.S. Commerce Department said on Thursday that during March, consumer spending rose 0.4% as households stepped up purchases of big-ticket items like automobiles and major household appliances. The overall pick up of consumer spending bodes well for consumption during the April-June period. ...

Asia and European equity markets were weak today despite inline or somewhat positive data. Bonds are selling off for a second day, with the 10-year German bund adding more than eight basis points to trade around 0.637%, a seven-week high, while the US 10-year is up five basis points to 2.096%. US equity markets are under pressure, with the DJIA down 0.31%, the S&P500 down 0.35% and the Nasdaq down 0.78%.

US data was not too bad. Jobless claims plunged to a 15-year low last week as the initial claims sank much more than expected. Regional manufacturing surveys were mixed: the Milwaukee ISM showed some deterioration, but the Chicago PMI was stronger than expected, with the headline index jumping six points and the unofficial ISM-weighted version gaining almost three points. The Chicago results were the strongest since January. ...

U.S. Government data showed a smaller-than-expected rise last week in U.S. crude oil inventories throughout the United States. Last week, U.S. crude oil inventories hit a record high for the 16th straight week, a high for 2015.

Crude stocks at U.S. Cushing, Oklahoma hub, the delivery point for U.S. crude futures, fell 514,000 barrels for the first decline since November 2014. U.S. weekly crude production rose slightly. The build of 1.9 million barrels was smaller than the 4.2 million barrels cited by the American Petroleum Institute.

Wednesday's leadership reshuffle announced at Saudi national oil company Aramco was held responsible for the increase in oil by over 2% today.

U.S. crude futures CLc1 were up $1.70 at $58.76 a barrel by 11:58am ET, after hitting a 2015 high of $58.85 on the session. ...

Indian markets are expected to open in the red tracking the SGX Nifty and Asian peers.

US markets closed negative as the Federal Reserve left interest rates unchanged and acknowledged that economic growth slowed during the winter months. The Commerce Department report indicated that the US economy grew by even less than anticipated in Q12015 at 0.2% v/s. expectations of an increase of 1%.

European markets closed firmly in the red, largely due to uncertainty ahead of the Fed announcement. The weaker than expected US GDP report for the first quarter also weighed on investor sentiment. ...

Sovereign bonds are selling off hard this morning as a confluence of factors sends yields higher. For the first time in nearly a month, the US 10-year yield is trading outside the 1.8-2.0% range as the selloff across global bonds has lifted the yield to 2.05%. The USD has weakened on the big miss in Q1 GDP, and traders are getting ready to read the tea leaves in this afternoon's FOMC statement. As of writing, the DJIA is off 0.39%, the S&P500 is down 0.28% and the Nasdaq is off 0.53%.

There are multiple possible factors behind today's bond selloff. Top money managers have talked about the rich potential short position on European bonds. A week ago, Bill Gross called German bunds "the short of a lifetime," and yesterday Jeff Gundlach speculated about the shorting the bund. Today's euro zone March money supply report was hotter than expected, with M3 growth rising more than expected to +4.6%, putting it back into the ECB's comfort zone for the first time since April 2009 (the report also said euro zone private lending returned to growth for the first time in 35 months). Finally, there is a deluge of euro-denominated corporate issuance this week, and a notable imbalance between eurozone government supply (€14 billion) and redemption of existing paper (€65 billion). ...

The U.S. Department of Commerce reported on Tuesday that seasonally adjusted home ownership rate dipped to 63.8%, striking the lowest ownership rate since Q4 1989 - 25 years ago. Home ownership rate peaked at 69.4% in 2004.

Household formation increased by 1.5 million during Q1 from the same period in 2014. Gains in household formation are largely driven by renters with a high number of Americans showing an aversion to homeownership. With the steady rise of multi-family residences, the economy should see a boost in home building.

Young adults moving away from home, out of their parents' house, are inclined to take up residency by sharing a place with friends or other relatives. ...

European markets have declined after Mondy's big equity gains, while in the US session markets have been shaken up by sensational headlines out of the Persian Gulf. The US 10-year yield has gained 3.7 basis points in the session. As of writing, the DJIA is up 0.24%, while both the S&P500 and the Nasdaq are about flat on the day.

A confusing dust-up in the Persian Gulf roiled markets mid-morning. Reports emerged around 10:00ET that Iran had seized a US cargo vessel, sending indices tumbling. Within an hour, a more complete picture emerged: apparently the Iranian Revolutionary Guard seized a Marshall Islands-flagged Maersk cargo ship in the Straits of Hormuz and the ship's distress call was answered by a US Navy destroyer, and warning shots were possibly fired by one side or the other. WTI briefly tested yesterday's highs around $57.80 and then gave up a buck. ...

In 1994 while making a cross-country drive from New York to Seattle with his wife MacKenzie, Jeff Bezos founded Amazon.com Inc. (AMZN-Nasdaq), writing up the Amazon business plan on the way as his wife took the wheel. Bezos is a well known American business magnate, investor and, founder and CEO of Amazon.com. In 1999 Bezos was named Time magazine's Person of the Year. He was selected by U.S. News & World Report as one of America's best leaders in 2008.

According to the Bloomberg Billionaires Index, Amazon's Q1 earnings report sent Bezos's fortune to the moon, making him richer than three of the four Wal-Mart Stores Inc. (WMT-NYSE) heirs. Bezos's fortune soared higher by $4.9 billion to $40 billion, making him the world's 10th richest person. Bezos' is now on par with Wal-Mart founder Sam Walton's daughter-in-law, Christy Walton, the richest woman in the U.S. ...

The Shanghai Composite surged 3% on Monday on reports the PBoC was talking about another round of QE stimulus and European indices saw very strong gains on the Chinese news and some positive developments on the Greek front. Trading has been a bit choppy in the US, with participants eyeing Wednesday's FOMC decision and tons of big earnings report, not the least Apple today after the close. As of writing, the DJIA is up 0.22%, the S&P500 is up 0.21% and the Nasdaq is up 0.05%.

Greek PM Tsipras reshuffled his team handling talks with Europe and the IMF after Finance Minister Varoufakis was sharply criticized for his performance negotiations last week. Deputy Finance Minister Tsakalatos was tapped to replace Varougakis as the main Greek negotiator, and Tsipras was reportedly preparing labor and pension concessions to satisfy European demands. The euro rose to a near three-week high on the news, above 1.0905, while yields on Greek government bonds are down sharply. ...

Shares of the worlds #1 Internet search engine Google Inc. (GOOG-Nasdaq) were up over 3% in early morning trading Friday after reporting higher quarterly revenue and profit.

Rising online ad volume offset a hit from the strong dollar.

For the quarter that ended in March, Google revenue rose 12% to $17.26 billion, from $15.42 billion in same period of 2014. Advertising sales for Q1 rose 11% to $15.51 billion. The number of ads - paid clicks - rose 13%, while the average price of online ads - cost per click - declined by 7%. ...

Yesterday the Nasdaq closed at 5,056, its first close above its previous record high since March 2000, while the S&P 500 briefly topped its prior record high of 2119 only to close a few points lower. Today the S&P500 is lower struggling to top the record high while the Nasdaq has been propelled higher by big gains in Microsoft and Amazon. As of writing, the DJIA is flat, the S&P500 is up 0.15% and the Nasdaq is up 0.73%.

The March advance durable goods report was mixed but somewhat weaker than expected. The headline component rose 4.0%, widely beating expectations, but this was mostly due to an unexpected increase in the volatile civilian aircraft category, as well as some larger-than-expected increases in the defense and motor vehicle sectors. Excluding transportation, orders were quite weak. ...

A seven-year investigation of Germany's largest lender - Deutsche Bank AG (DB-NYSE) - resulted in the largest penalty imposed on one of the world's top financial institutions to the tune of nearly $8.5 billion.

U.S. regulators fined Deutsche Bank $2.12 billion and slammed the lender for "cultural failings", directly blaming senior staff officials for misleading regulatory officers, failing to be open and cooperative while prolonging the investigation. Regulators ordered the firing of seven Deutsche Bank employees, with twenty-one additional bank employees facing criminal charges. ...

Weak PMI reports out of Europe, disappointing March new home sales numbers and caution ahead of the Eurogroup meeting on Friday limited equities earlier today. But after Europe closed, with the CAC and DAX near session lows, things have improved a bit. Note that the Nasdaq is testing all-time highs this morning. Big gains in energy names on rising crude prices are leading things higher. As of writing, the DJIA is up 0.16%, the S&P500 is flat and the Nasdaq is up 0.23%.

Unlike the big improvement in yesterday's March existing home sales, today's March new home sales data was disappointing. Existing home sales had bounced higher off the weather-impacted February numbers, but the March new home sales declined more than 10% from February's total. Analysts highlight that the series is highly erratic and subject to big revisions, but the XHB is off 1.5% in any case. A more significant factor for housing names this morning is Pulte Homes, which widely missed earnings and revenue targets, with performance weighed down with construction delays. PHM is off more than 8%, while other major homebuilders are down 3-4%. In other data, Markit's preliminary PMI index for April fell to 54.2 in April from 55.7 in March. ...