Description: The article is about 53 bank login. The passage mainly talks about the economic news in the last week. Equity markets started out soft and ended the week stronger,the S&P 500 and Dow Jones Industrial Average posted modest declines.
I’m director of investments at Fifth Third Bank in Chicago,we had a mixed week of economic news and market returns last week,first quarter earnings season continued and trade conversations remained front and center,equity markets started out soft and ended the week stronger,the S&P 500 and Dow Jones Industrial Average posted modest declines.
The technology sector was the clear winner of the week,the technology heavy Nasdaq Composite Index gained one point three percent,West Texas Intermediate crude oil closed Friday at sixty nine dollars and 79 cents per barrel,observers contemplated reports of rising US stockpiles and possible renewed sanctions on Iran.
The benchmark ten-year US Treasury yield was little changed at two point nine five percent. In economic news,the Federal Reserve met for their may Federal Open Market Committee meeting last week. As anticipated,the Federal Reserve made no change to short-term interest rates leaving the Fed Funds rate at one and a half to one and three-quarters percent.
Improvement in inflation was recognized and reinforced by a key inflation release in advance of the FOMC meeting. Personal consumption expenditures is an important measure of inflation monitored by the Federal Reserve as it is tied to consumer spending rose 1.9% year-over-year,it supports the feds tone of gradual interest rate tightening as inflation is expected to run near the committee’s 2 percent target.
In other economic news,the unemployment rate fell below 4 percent to three point nine percent,it is the lowest in 18 years,it breaks a six-month streak of a four point one percent unemployment rate.
Wage gains were not as much as expected and the labor force participation rate moved slightly lower from sixty-two point nine to sixty two point eight in April. Non-farm payrolls rose 100 64,000 following an upwardly revised 135,000 payroll figure in March.
The Institute for Supply Management manufacturing and services releases for April reflected manufacturing moving lower to 57.3 and services declining to 56.8,they are both softer than expected while still well above the 50 level which indicates expansion.
The highlight in economic reports this week is inflation. With the producer and consumer price index releases for April,the NFIB small business optimism index for April comes out this week forecasted to be in line with the March reading of one hundred and four point seven,it points to continued optimism for small businesses.
We’ll also watch for the JOLTS report,job openings and labour turnover survey data for March. Finally,weekly jobless claims for the week ending May 5th as well as the University of Michigan Consumer Sentiment Index release will arrive late week.