Stocks may hit new highs on jobs data

LAST week, stocks dropped after big letdowns from the Bank of Japan (BOJ), US data and Apple.

Stocks remain close to all-time highs and could break through to new heights if jobs data and earnings this week ease fears about the outlook for the US and global economies.

Traders had hoped the central bank of Japan would cut rates in an effort to stimulate the export-oriented economy, which, like the US, is sustaining damage in the recent currency wars. The yen has hit a multi-year high, diminishing the value of international sales for companies such as Sony and Toyota. But concerns about inflation apparently trumped growth worries in Japan and stock markets worldwide swooned in response.

Much of the gains in stock and commodities markets in recent weeks were inspired by the Federal Reserve's battle to "keep the dollar at bay" by postponing rate hikes, said Quincy Krosby, market strategist at Prudential Financial. Should the US central bank follow in the BOJ's footsteps, and let its currency run wild, all the recent gains could b…