From the Desk - Economic Commentary
Brandon Casey, Member Strategist - 5/1/2024
U.S. stocks are mixed Wednesday morning as investors digest both corporate earnings and economic data, while also awaiting the FOMC rate decision later today. The DJIA is higher in early trading, while both the S&P 500 and Nasdaq are lower. Markets are coming off a losing session on Tuesday, with all three major averages down at least 1%.
Looking at economic data today, the ADP Employment Report showed that private payrolls increased by 192,000 in April, above expectations of 183,000. The March report was revised higher to 208,000, up from 184,000. The report also showed that wages were up 5.0% from a year ago, the smallest increase since August 2021.
Elsewhere, JOLTS job openings fell to 8.49 million in March, below estimates of 8.69 and the lowest level since February 2021. Openings are down 1.1 million over the last year. Separation and hire rates were little changed at 3.3% and 3.5%, respectively.
Wrapping up data, the ISM Manufacturing PMI fell to a reading of 49.2 in April, just below expectations and back into contraction territory. New orders and employment contracted, while production and prices increased. Lastly, construction spending unexpectedly fell 0.2% in March, versus expectations of growing 0.3%.
U.S. Treasury yields are lower this morning, with the 2-year Treasury yield down 3.8 basis points to 5.01%, the 5-year Treasury yield down 3.8 basis points to 4.68%, and the 10-year Treasury yield down 3.5 basis points to 4.65%. Advance rates are mostly lower today.
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