>>Review of Last Week
STOCKS SPRING AHEAD… Many expected Good Friday’s disappointing March jobs report would tank markets on Monday. But in another bad news is good news scenario, stocks started the week up, and finished that way for the second week in a row. The bad news that the economy added a measly 126,000 new payrolls in March meant the Fed would probably push off a rate hike, good news to Wall Street and the housing market. Wednesday, the minutes from the Fed’s March meeting revealed several bankers felt June was a good time to start raising rates. But this was ignored, since that meeting was held before the weak jobs data came out.
In another key report, ISM Services dipped to 56.5 in March from 56.9 the month before. Although it’s now going in the wrong direction, this measure remains above 50, signaling expansion for the part of the economy that provides well over 80% of our jobs. It’s good to see the sector wasn’t hurt as much as manufacturing by the unusually cold winter. Initial Unemployment Claims edged higher for the week, but the more important 4-week moving average sank to 282,250. This is 3,000 fewer than the prior week and the lowest level for the average since June 3, 2000. This is a very favorable trend, as people can feel more secure in the jobs they have.
The week ended with the Dow UP 1.7%, to 18058; the S&P 500 was also UP 1.7%, to 2102; while the Nasdaq shot UP 2.2%, to 4996.
With investor money flowing into surging stocks, bond prices fell. The 30YR FNMA 4.0% bond we watch finished the week down .76, to $106.26.National average fixed mortgage rates moved lower in Freddie Mac’s Primary Mortgage Market Survey for the week ending April 9. It was felt this was the result of the disappointing March employment report. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information.
DID YOU KNOW?… A leading business magazine reports that from February 2014 to February 2015, the number of new homes sold was up 24.8%, existing home sales were up 4.7%, and the median existing home price was up more than 7%.
>>This Week’s Forecast
CONSUMERS GO SHOPPING AS PRICES HOLD... Analysts predict Retail Sales will grow in March and part of the reason may be that prices are expected to remain under control for the month. This bit of data should be confirmed by the Core Consumer Price Index (CPI), up just a tick. To judge the health of manufacturing, the Fed focuses on the Philadelphia Fed Index and that’s forecast to show continued growth in that part of the country. Check out the Fed’s Beige Book on Wednesday for impressions of the economic situation in the 12 Federal Reserve Districts across the country.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
>>Review of Last Week
STOCKS SPRING AHEAD… Many expected Good Friday’s disappointing March jobs report would tank markets on Monday. But in another bad news is good news scenario, stocks started the week up, and finished that way for the second week in a row. The bad news that the economy added a measly 126,000 new payrolls in March meant the Fed would probably push off a rate hike, good news to Wall Street and the housing market. Wednesday, the minutes from the Fed’s March meeting revealed several bankers felt June was a good time to start raising rates. But this was ignored, since that meeting was held before the weak jobs data came out.
In another key report, ISM Services dipped to 56.5 in March from 56.9 the month before. Although it’s now going in the wrong direction, this measure remains above 50, signaling expansion for the part of the economy that provides well over 80% of our jobs. It’s good to see the sector wasn’t hurt as much as manufacturing by the unusually cold winter. Initial Unemployment Claims edged higher for the week, but the more important 4-week moving average sank to 282,250. This is 3,000 fewer than the prior week and the lowest level for the average since June 3, 2000. This is a very favorable trend, as people can feel more secure in the jobs they have.
The week ended with the Dow UP 1.7%, to 18058; the S&P 500 was also UP 1.7%, to 2102; while the Nasdaq shot UP 2.2%, to 4996.
With investor money flowing into surging stocks, bond prices fell. The 30YR FNMA 4.0% bond we watch finished the week down .76, to $106.26.National average fixed mortgage rates moved lower in Freddie Mac’s Primary Mortgage Market Survey for the week ending April 9. It was felt this was the result of the disappointing March employment report. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information.
DID YOU KNOW?… A leading business magazine reports that from February 2014 to February 2015, the number of new homes sold was up 24.8%, existing home sales were up 4.7%, and the median existing home price was up more than 7%.
>>This Week’s Forecast
CONSUMERS GO SHOPPING AS PRICES HOLD... Analysts predict Retail Sales will grow in March and part of the reason may be that prices are expected to remain under control for the month. This bit of data should be confirmed by the Core Consumer Price Index (CPI), up just a tick. To judge the health of manufacturing, the Fed focuses on the Philadelphia Fed Index and that’s forecast to show continued growth in that part of the country. Check out the Fed’s Beige Book on Wednesday for impressions of the economic situation in the 12 Federal Reserve Districts across the country.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.