S&P Ends Week Barely Changed Despite Jobs Report Shortfall

The S&P 500 barely budged from where it began the holiday shortened week despite a slew of macroeconomic events, highlighted at home by the lackluster jobs report for May and abroad by the Japanese delay in its sales tax hike as well as meetings of the ECB and OPEC.

Macro News:

In the U.S., economists and investors largely agreed that the government's estimate the U.S. economy added only 38,000 new jobs last month just about eliminates any chance that the Fed will hike rates when they meet later this month.

Other data released this week showed personal income rose 0.4% in April, as expected, while consumer spending grew 1.0%, which was better than 0.7% increase forecast. The Chicago PMI dipped 1.1 points in May to 49.3, versus expectations for a reading of 50.5. The Conference Board's consumer confidence index for May dropped to 92.6, versus expectations for it to have risen to a 96.1 from its prior level of 94.2.

Markit's final manufacturing purchasing managers index reading for May came in at 50.7, better than the flash reading of 50.5, but slightly weaker than April's 50.8 reading. ISM's manufacturing index rose to 51.3, which was a point better than the 50.3 consensus forecast. Construction spending unexpectedly dropped 1.8% in April, versus expectations for it to have risen 0.6%. In its latest Beige Book, the Federal Reserve said that the information received from the 12 Fed districts mostly described "modest" economic growth.

In Europe, the European Central Bank, as expected, kept the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility unchanged. The ECB also announced that the Eurosystem will start making purchases under its corporate sector purchase program on June 8.

The overall Eurozone PMI for May came in at 51.5, also flat with April and in-line with the consensus projection. Eurozone unemployment was stable at 10.2% in April, matching the consensus expectation. The consumer price index for May fell 0.1% and the core CPI rose 0.8%, both of which met expectations. Confidence in the euro-area increased to a four-month high, according to an index of business and consumer sentiment released by the European Commission.

1 2 3 4
View single page >> |

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.