Rates Improve Slightly On Mixed Data
Interest rates improved slightly on the week on a mixed bag of economic data. Today’s April Employment report showed 88,000 new non farm payrolls on expectations of 100,000 new jobs. Unemployment increased to 4.5% from 4.4% in March. Average hourly earnings increased just 0.2% leaving the year over year gain at 3.7%, the weakest year over gain since May of 2006. Also supporting interest rates was Monday’s Personal Consumer Expenditures (PCE) Index which fell in March to 2.1% year over year from 2.4% year over year in February. This is a closely watched inflation measure which is now closer to the Fed’s comfort zone of 2.0% growth year over year.
Other news of note included March Personal Income, up 0.7%, and Personal Spending, up 0.3%. The National ISM Manufacturing Index and Services Sector Index were both stronger than expected. Weekly Jobless Claims dropped more than expected. Q1 Productivity and March Factory Orders were stronger than expected as well.
The Dow Jones Industrial Average is currently at 13,255 and crude oil futures prices have dropped to just under $62 per barrel.
Next week look toward Wednesday’s FOMC Announcement on monetary policy, Thursday’s International Trade Report, and Friday’s Retail Sales and Producer Price Index (PPI) as potential market moving events.