Dow slid 36, decliners over advancers 5-4 & NAZ lost 17. The MLP index rose 2+ to the 438s & the REIT index went up a fraction to the 319s. Junk bond funds were mixed to lower & Treasuries rallied. Oil is solidly back above 60 & gold has its eyes on going over 1200.
Dow Jones Industrials
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.195557571387722)
The US budget surplus in Apr rose to the highest level since 2008
on record revenue as hiring improved during a month when Americans file
tax returns. Revenue exceeded spending by $157B, compared with
a $107B surplus a year earlier, according to the Treasury Dept. The estimate was for a $155B surplus. Hiring bounced back in Apr as the jobless rate fell to 5.4%,
the lowest since May 2008, from 5.5% month earlier. That’s
swelling Treasury coffers & improving the nation’s fiscal
situation as spending gains 6.4% so far this year. The Apr surplus was the 5th-highest on record for any month. So far this fiscal year, which began Oct 1, the deficit declined to
$283B compared with $306B in the same 7-month
period a year earlier. Revenue increased 13.9% in Apr to an all-time high of $472B, while outlays gained 2.5% to $315B. The Congressional Budget Office, which estimated the Apr surplus at
$155 billion, listed higher spending on Medicaid, Medicare & Social
Security among the reasons for increase in outlays last month.
Slack in the US job market showed signs of diminishing in Mar even amid the weakest payroll gain in over 2 years. More employees quit than at any time since 2008, while a slight pickup in hiring was met by an even larger gain in layoffs, according to the Labor Dept. The report also showed the number of positions waiting to be filled decreased 150K to 4.99M from a revised 5.14M in Feb (the highest in 14 years). Such churn is more typical of a healthier job market where workers move on to better-paying opportunities & employers look to attract more skilled staff. The data, which are tracked by Federal Reserve (FED) to gauge labor-market tightness & employee confidence, add to evidence the payroll slowdown in Mar was temporary. Even with the decline, job openings in Mar were at the 2nd-highest level since 2001. The forecast projected there would be 5.11M openings, down from a previously reported 5.13M in Feb. The Job Openings & Labor Turnover Survey (JOLTS) adds context to monthly payrolls figures by measuring dynamics such as resignations, help-wanted ads & the pace of hiring. Although it lags the Labor Dept's other jobs data by a month, levels of openings, quits & layoffs are among the 9 indicators that the FED has said help understand the state of the labor market. Job openings decreased in construction, manufacturing & health care. They rose in professional & business services & entertainment. The number hired climbed to 5.07M in Mar, the most so far this year, from 5.01M the prior month. The hiring rate was unchanged at 3.6%. 2.78M quit their jobs in Mar, the most since Apr 2008. The quits rate, which shows the willingness of workers to leave their jobs, increased to 2% in Mar from 1.9% the month before. The reading matches levels seen before the recession started more than 7 years ago, indicating employees are becoming more confident they can find other jobs. About 1.79M were dismissed from their jobs in Mar, up from 1.69M the prior month (the most since Jul). In the 12 months ended Mar, the economy created a net 3M jobs, representing 59.7M hires & 56.7M separations. About 1.7 unemployed people were vying for every opening in Mar, compared with 1.8 when the recession began.
General Motors has become the latest global auto maker to slash prices in China amid a slowdown in the world's #1 auto market. GM's main local joint venture lowered prices on 40 models by 10K yuan ($1600) to 53.9K yuan ($8.7K), covering the 3 main brands it sells in China: Buick, Chevrolet & Cadillac. In the case of the Cadillac ATS sedan, the price fell 6.7% to 418K yuan, while the price of a Chevrolet Cruze with a 1.5-liter engine fell 8.3% to 110K yuan. Shanghai General Motors said it cut prices to adapt to China's "new normal," a phrased used by Chinese leaders to indicate slowing economic growth. "Through the price adjustment, the selected products will consolidate their leading position in different segments, making them more attractive to consumers," a spokes person said. The statement came on the heels of similar moves by others global auto companies in recent weeks in China, which has seen an auto sales slowdown, intensifying competition & higher inventories of unsold cars on dealer lots. Industry experts say the push to protect market share could hurt profitability in a market many have counted on for strong sales and healthy profit margins. Sales are expected to slow further. In the first 4 months of this year, sales of passenger vehicles in China grew 7.7% from a year earlier, according to the China Association of Automobile Manufacturers. The association has put its estimate for growth in the passenger vehicle market at 8% this year, slower than last year's growth of 9.9% & the 2013 pace of 16%. Consultancy IHS Automotive forecast growth for the light vehicle market this year at 7% & next year at 6%. Foreign car makers have felt the impact. In the first 4 months of this year, they sold 4M passenger vehicles, largely flat compared with a year earlier. GM sold about 3.54M vehicles in China last year, more than 1/3 of its global sales volumes, & the company plans to raise its vehicle sales volumes in China by 40% by 2018. Shanghai GM in Apr unveiled a $16B investment plan for China that includes developing new-car products to cater to Chinese tastes. With the investment, Shanghai GM expects to seize a minimum 10% share of the domestic market for passenger cars, up from a 9% share currently. The stock went down 48¢. If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
Stocks in Europe had a very bad day & bonds keep selling off around the globe. Nobody is sure what it is behind these swings, but markets in the US are nervous. Dow continues its sideways trend since Dec as shown in the chart below. The MLP index has a mini rally off its lows in mid Mar, but is selling off again this month. The REIT index is is down more than 10% from its highs at the end of Jan. Times are more troubling than near record levels of the stock averages suggest.
Dow Jones Industrials
Dow Jones Industrials
| CLM15.NYM | ....Crude Oil Jun 15 | ....60.44 |  ...1.19 | (2.0%) |
Record Revenue Boosts U.S. April Budget Surplus
Slack in the US job market showed signs of diminishing in Mar even amid the weakest payroll gain in over 2 years. More employees quit than at any time since 2008, while a slight pickup in hiring was met by an even larger gain in layoffs, according to the Labor Dept. The report also showed the number of positions waiting to be filled decreased 150K to 4.99M from a revised 5.14M in Feb (the highest in 14 years). Such churn is more typical of a healthier job market where workers move on to better-paying opportunities & employers look to attract more skilled staff. The data, which are tracked by Federal Reserve (FED) to gauge labor-market tightness & employee confidence, add to evidence the payroll slowdown in Mar was temporary. Even with the decline, job openings in Mar were at the 2nd-highest level since 2001. The forecast projected there would be 5.11M openings, down from a previously reported 5.13M in Feb. The Job Openings & Labor Turnover Survey (JOLTS) adds context to monthly payrolls figures by measuring dynamics such as resignations, help-wanted ads & the pace of hiring. Although it lags the Labor Dept's other jobs data by a month, levels of openings, quits & layoffs are among the 9 indicators that the FED has said help understand the state of the labor market. Job openings decreased in construction, manufacturing & health care. They rose in professional & business services & entertainment. The number hired climbed to 5.07M in Mar, the most so far this year, from 5.01M the prior month. The hiring rate was unchanged at 3.6%. 2.78M quit their jobs in Mar, the most since Apr 2008. The quits rate, which shows the willingness of workers to leave their jobs, increased to 2% in Mar from 1.9% the month before. The reading matches levels seen before the recession started more than 7 years ago, indicating employees are becoming more confident they can find other jobs. About 1.79M were dismissed from their jobs in Mar, up from 1.69M the prior month (the most since Jul). In the 12 months ended Mar, the economy created a net 3M jobs, representing 59.7M hires & 56.7M separations. About 1.7 unemployed people were vying for every opening in Mar, compared with 1.8 when the recession began.
Slack in U.S. Job Market Kept Waning Even During March Slump
General Motors has become the latest global auto maker to slash prices in China amid a slowdown in the world's #1 auto market. GM's main local joint venture lowered prices on 40 models by 10K yuan ($1600) to 53.9K yuan ($8.7K), covering the 3 main brands it sells in China: Buick, Chevrolet & Cadillac. In the case of the Cadillac ATS sedan, the price fell 6.7% to 418K yuan, while the price of a Chevrolet Cruze with a 1.5-liter engine fell 8.3% to 110K yuan. Shanghai General Motors said it cut prices to adapt to China's "new normal," a phrased used by Chinese leaders to indicate slowing economic growth. "Through the price adjustment, the selected products will consolidate their leading position in different segments, making them more attractive to consumers," a spokes person said. The statement came on the heels of similar moves by others global auto companies in recent weeks in China, which has seen an auto sales slowdown, intensifying competition & higher inventories of unsold cars on dealer lots. Industry experts say the push to protect market share could hurt profitability in a market many have counted on for strong sales and healthy profit margins. Sales are expected to slow further. In the first 4 months of this year, sales of passenger vehicles in China grew 7.7% from a year earlier, according to the China Association of Automobile Manufacturers. The association has put its estimate for growth in the passenger vehicle market at 8% this year, slower than last year's growth of 9.9% & the 2013 pace of 16%. Consultancy IHS Automotive forecast growth for the light vehicle market this year at 7% & next year at 6%. Foreign car makers have felt the impact. In the first 4 months of this year, they sold 4M passenger vehicles, largely flat compared with a year earlier. GM sold about 3.54M vehicles in China last year, more than 1/3 of its global sales volumes, & the company plans to raise its vehicle sales volumes in China by 40% by 2018. Shanghai GM in Apr unveiled a $16B investment plan for China that includes developing new-car products to cater to Chinese tastes. With the investment, Shanghai GM expects to seize a minimum 10% share of the domestic market for passenger cars, up from a 9% share currently. The stock went down 48¢. If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM?a_aid=CD3289&a_bid=6ae5b6f7
GM Slashes Prices in China Amid Slowdown
General Motors (GM)
Stocks in Europe had a very bad day & bonds keep selling off around the globe. Nobody is sure what it is behind these swings, but markets in the US are nervous. Dow continues its sideways trend since Dec as shown in the chart below. The MLP index has a mini rally off its lows in mid Mar, but is selling off again this month. The REIT index is is down more than 10% from its highs at the end of Jan. Times are more troubling than near record levels of the stock averages suggest.
Dow Jones Industrials
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