Dow dropped 128, decliners over advancers 5-2 & NAZ lost 24. The MLP index fell 5 to the 437s (last seen on Mar 20) & the REIT index was off 1 to 282. Junk bond funds were mixed & Treasuries rallied. Oil was higher & gold finally found buyers, taking it back over 1400.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
US businesses added jobs at a sluggish pace in May, an indication that hiring may cooling off. Payroll provider ADP says companies added 135K, higher than the revised total of 113K for Apr. But it's much lower than the gains ADP reported over the winter, which averaged more than 200K a month from Nov-Feb. The ADP report is derived from payroll data & tracks private employment. It has diverged at times from the gov comprehensive monthly jobs report, which will be released Fri. In Apr, the gov said private employers added 176K jobs, much higher than the ADP estimate.
Companies in U.S. Added Fewer Workers Than Forecast in May
Photo: Bloomberg
US service firms grew at a faster pace in May, driven by a jump in new orders while a measure of hiring (above) showed companies added fewer jobs. The Institute for Supply Management said that its index of service-sector growth rose to 53.7 from 53.1 in Apr. Any reading above 50 indicates expansion. But that's below the 12-month average of 54.4 A measure of employment fell to 50.1, the lowest since last Jul. Service firms have been the main source of jobs gains in the past several months. Manufacturers have cut back sharply on hiring this year. Growth in the service industry depends largely on consumers, whose spending drives roughly 70% of economic activity. A steady recovery in housing & stronger consumer spending helped push the index higher earlier this year. But Americans spent less in Apr as their income failed to grow which signals the economy may be slowing this spring.
Service Industries in U.S. Expanded at a Faster Pace in May
Orders to US factories rose modestly in Apr as manufacturers rebounded from a weak Mar performance. Factory orders rose 1% compared with Mar when orders had dropped a sharp 4.7%, according to the Commerce Dept. The big swing reflected volatility in commercial aircraft orders, which were down sharply in Mar but surged 53% in Apr. In a hopeful sign, orders in a category viewed as a proxy for business investment spending posted a moderate 1.2% rise following a 1.1% gain in Mar (after falling 4.8% in Feb). The Apr increase pushed orders to $474B, 1.7% higher than a year ago. Orders for long-lasting goods rose 3.5% compared with Mar following a 5.9% decline in Mar. Orders for nondurable products fell 1% after a 3.5% Mar decline. The decline in nondurable products primarily reflected falling energy prices. In the durable goods area, orders for transportation products were up 8.4%, reflecting gains not only in demand for commercial aircraft but also motor vehicles & cars & defense aircraft. Excluding transportation, orders would have edged down a tiny 0.1%, a better showing than Mar when orders excluding transportation fell 2.8%. This data is one month prior to the other data reported above.
US factory orders up 1 percent in April AP
Dow is at its lowest level in a month & sinking. It bottomed at 12.1K last Jun 4 & has had a pretty much straight up run since then. There was a pause in Sep-Dec, but otherwise it has been largely rising for a spectacular gain of almost 3K. After being vastly overbought, the market has been settling back in the last month. The economy keeps giving drab numbers, growth but nothing to write home about. A rebounding housing market is helping to lower the unemployment rate, but it remains at unacceptable levels in a recovery that seen very sloooow growth. Traders are reacting to a dose of reality.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.05% | |
U.S. 2-year |
0.29% | |
U.S. 10-year |
2.10% |
| CLN13.NYM | ...Crude Oil Jul 13 | ...93.97 |  ...0.66 | (0.7%) |
| GCN13.CMX | ...Gold Jul 13 | .....1,403.70 | ...6.60 | (0.5%) |
Photo: Bloomberg
US businesses added jobs at a sluggish pace in May, an indication that hiring may cooling off. Payroll provider ADP says companies added 135K, higher than the revised total of 113K for Apr. But it's much lower than the gains ADP reported over the winter, which averaged more than 200K a month from Nov-Feb. The ADP report is derived from payroll data & tracks private employment. It has diverged at times from the gov comprehensive monthly jobs report, which will be released Fri. In Apr, the gov said private employers added 176K jobs, much higher than the ADP estimate.
Companies in U.S. Added Fewer Workers Than Forecast in May
Photo: Bloomberg
US service firms grew at a faster pace in May, driven by a jump in new orders while a measure of hiring (above) showed companies added fewer jobs. The Institute for Supply Management said that its index of service-sector growth rose to 53.7 from 53.1 in Apr. Any reading above 50 indicates expansion. But that's below the 12-month average of 54.4 A measure of employment fell to 50.1, the lowest since last Jul. Service firms have been the main source of jobs gains in the past several months. Manufacturers have cut back sharply on hiring this year. Growth in the service industry depends largely on consumers, whose spending drives roughly 70% of economic activity. A steady recovery in housing & stronger consumer spending helped push the index higher earlier this year. But Americans spent less in Apr as their income failed to grow which signals the economy may be slowing this spring.
Service Industries in U.S. Expanded at a Faster Pace in May
Orders to US factories rose modestly in Apr as manufacturers rebounded from a weak Mar performance. Factory orders rose 1% compared with Mar when orders had dropped a sharp 4.7%, according to the Commerce Dept. The big swing reflected volatility in commercial aircraft orders, which were down sharply in Mar but surged 53% in Apr. In a hopeful sign, orders in a category viewed as a proxy for business investment spending posted a moderate 1.2% rise following a 1.1% gain in Mar (after falling 4.8% in Feb). The Apr increase pushed orders to $474B, 1.7% higher than a year ago. Orders for long-lasting goods rose 3.5% compared with Mar following a 5.9% decline in Mar. Orders for nondurable products fell 1% after a 3.5% Mar decline. The decline in nondurable products primarily reflected falling energy prices. In the durable goods area, orders for transportation products were up 8.4%, reflecting gains not only in demand for commercial aircraft but also motor vehicles & cars & defense aircraft. Excluding transportation, orders would have edged down a tiny 0.1%, a better showing than Mar when orders excluding transportation fell 2.8%. This data is one month prior to the other data reported above.
US factory orders up 1 percent in April AP
Dow is at its lowest level in a month & sinking. It bottomed at 12.1K last Jun 4 & has had a pretty much straight up run since then. There was a pause in Sep-Dec, but otherwise it has been largely rising for a spectacular gain of almost 3K. After being vastly overbought, the market has been settling back in the last month. The economy keeps giving drab numbers, growth but nothing to write home about. A rebounding housing market is helping to lower the unemployment rate, but it remains at unacceptable levels in a recovery that seen very sloooow growth. Traders are reacting to a dose of reality.
Dow Jones Industrials
No comments:
Post a Comment