JOBLESS RATE HITS 18-YEAR LOW
Unemployment fell to 3.9% in April, the Department of Labor said Friday – the smallest percentage seen since late 2000. Additionally, the U-6 underemployment rate declined to 7.8%, a 17-year low. Payrolls expanded with 164,000 net new jobs last month; the economy has created an average of 200,000 jobs a month so far in 2018, compared to 177,000 a month in 2017. 1
PERSONAL SPENDING IMPROVES 0.4%
The March gain reported by the Bureau of Economic Analysis was the best since the 0.5% advance in December. Personal wages increased 0.3% for March, replicating the gain from February. 2
ISM INDICES RETREAT
Purchasing manager indices at the Arizona-based Institute for Supply Management showed the factory and service sectors of the economy cooling down in April from a red-hot degree of expansion. ISM’s manufacturing PMI fell 2.0 points to 57.3, and its non-manufacturing PMI dropped by the same amount to 56.8. 3
NASDAQ RISES; DOW, S&P FALL SLIGHTLY
All three major Wall Street indices rallied on Friday, but only the Nasdaq Composite ended up higher on the week. Across five trading sessions, the tech-heavy benchmark gained 1.26% to 7,209.62. The S&P 500 declined 0.24% for the week to 2,663.42, while the Dow Jones Industrial Average lost 0.20% to settle at 24,262.51. 4
THIS WEEK : AMC Entertainment, Andeavor, Hertz Global Holdings, Invacare, Sempra Energy, Sysco, and Tyson Foods announce earnings Monday. Before Tuesday’s open, Federal Reserve chair Jerome Powell comments on monetary policy in Switzerland; after the open, Wall Street considers earnings calls from Aramark, Dean Foods, Discovery, DISH Network, Electronic Arts, Etsy, La Quinta Holdings, Marriott, Monster, Papa John’s, Planet Fitness, TripAdvisor, U.S. Auto Parts, Valeant, Walt Disney Co., Wendy’s, and William Lyon Homes. April’s Producer Price Index arrives Wednesday, plus earnings from Anheuser-Busch, Coty, Green Dot, Groupon, Horizon Pharma, Hostess, Office Depot, Roku, Siemens AG, Spectra Energy Partners, Sunoco, 21st Century Fox, and Weibo. Thursday, the April Consumer Price Index and new initial claims figure complement earnings from AMC Networks, Duke Energy, News Corp., Nvidia, Symantec, TiVo, and Yelp. On Friday, the University of Michigan unveils its preliminary May consumer sentiment index, and ArcelorMittal and Thomson Reuters make earnings news.
|Y-T-D||1-YR CHG||5-YR AVG||10-YR AVG|
|REAL YIELD||5/04 RATE||1 YR AGO||5 YRS AGO||10 YRS AGO|
|10 YR TIPS||0.79%||0.50%||0.53%||1.53%|
Sources: wsj.com, bigcharts.com, treasury.gov – 5/4/18 4,5,6,7
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.
“Humor is also a way of saying something serious.” – T.S. Eliot
Remember that there are two kinds of 529 plans: the prepaid tuition plan and the college savings plan. A prepaid tuition plan lets you pay some of the future cost of a university education today. A college savings plan offers you a choice of equity investments for your savings and has variable returns.
I went into the woods and got it. I brought it home in my hand and removed it. What am I talking about?
Last week’s riddle:
It can be high or low, it may run between your toes. It relates to the sun and the sky, and it may make things fall and rise. What is it?
Last week’s answer:
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1 – jamiedupree.blog.ajc.com/2018/05/04/nations-jobless-rate-drops-under-4-percent-for-first-time-since-2000/ [5/4/18]
2 – tradingeconomics.com/united-states/personal-spending [5/4/18]
3 – instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm?SSO=1 [5/4/18]
4 – markets.wsj.com/us [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F4%2F17&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F4%2F17&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F4%2F17&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F3%2F13&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F3%2F13&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F3%2F13&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F5%2F08&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F5%2F08&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F5%2F08&x=0&y=0 [5/4/18]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/4/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/4/18]