Monday, May 07, 2007
Good News?
Friday continued to see gains following more merger rumors and non-bearish economic news.
The SPX added 3.23 points to finish on 1,505.62.
The economy continued to be the major story Friday with the release of the April employment report. Nonfarm payrolls rose by 88,000, just below estimates for a gain of 100,000. At the same time, the unemployment rate rose a tenth to 4.5 percent and average hourly earnings were up 0.2 percent, a tenth below estimates.
Friday's data helped raise the odds of a Fed rate cut later in the year, but the feeling is that the Fed will be on hold for several meetings. Next Wednesday is the next Fed meeting and we will get more information on how the Fed views the economy when they release their statement. So far, the Fed seems to be right in their view a decelerating economy will help ease inflation pressures.
Until next time.
The SPX added 3.23 points to finish on 1,505.62.
The economy continued to be the major story Friday with the release of the April employment report. Nonfarm payrolls rose by 88,000, just below estimates for a gain of 100,000. At the same time, the unemployment rate rose a tenth to 4.5 percent and average hourly earnings were up 0.2 percent, a tenth below estimates.
Friday's data helped raise the odds of a Fed rate cut later in the year, but the feeling is that the Fed will be on hold for several meetings. Next Wednesday is the next Fed meeting and we will get more information on how the Fed views the economy when they release their statement. So far, the Fed seems to be right in their view a decelerating economy will help ease inflation pressures.
Until next time.
# posted by Paul @ 8:21 AM 
