"If job openings are still expanding and employment growth slowed down, that would be a scenario that shows the demand for labor is there, and the supply is not available. It's a little dated, but it's an unusually important number," said Sinche. The data are expected to show that there were 5.67 million job openings in April, down from an eight-month high of 5.76 million in March.
Yellen, in her speech, managed to push back rate expectations but leave the door open to rate hikes this year. The Fed's forecast includes two rate hikes this year, so traders are awaiting the Fed meeting next week for guidance on its latest thinking.
"I actually read [Yellen] as being much more hawkish and much more it being a Fed that wants to hike rates, rather than a Fed that doesn't want to hike rates," said Sinche.
Expectations in the Fed funds futures market Tuesday fell to about 20 percent for a July rate hike, an expectation that had been as high as 63 percent before the jobs report. Stocks were mixed, with the S&P 500 rising above a resistance level of 2,111, and taking aim at its May 2015 all-time high of 2,132. The S&P 500 was up 2 at 2,112, while the Nasdaq slid on weakness in biotech and lost 6 to 4,961. Futures were higher Wednesday.
The Fed sensitive two-year yield was at 0.79 percent. But the interesting reaction was in the German bund, where the 10-year yield touched a record low 0.03 percent Wednesday. Traders also said investors are seeking safety in bunds ahead of the U.K. vote June 23 on leaving the European Union. The low yielding bund helped drive buyers into the long end of the U.S. bond market.
Oil prices could also be a factor for markets Wednesday. West Texas Intermediate futures rallied Wednesday, after settling up 1.4 percent to $50.36 per barrel, its first settle above $50 since July 2015. The Energy Information Administration data on oil inventories is expected at 10:30 a.m. EDT.
Wieting said the improvement in oil prices has led him to change his allocations in his midyear outlook.
"This year we're looking to raise exposure to petroleum, and we've done that in multiple asset classes," he said. One area is Latin-American debt, and another is Canadian equities.
"If you look at the last couple of years, investors were prematurely bullish. Last year, petroleum production was still growing while capex was beginning to get cut," he said. "Global exploration activity has fallen 50 percent, and inventories should be the last thing to fall."