Registered Investment Adviser Caleb Lawrence
Despite significant disappointing news the major averages enter the final hour with modest gains. Since Tuesday the Standard and Poors 500 Index is up 27 points or a little over 1% while the NASDAQ has gained 96 points or about 1.5%.
The official May employment report missed expectations substantially for a second time in the last three months with just 138,000 new jobs created, far below the 185,000 expected. April and March were revised lower by a combined 66,000. The unemployment rate slipped to 4.3%. The average workweek remained unchanged at 34.4 hours. Average hourly earnings gained .2%. The 3-month average for job creation fell for a 3rd month hitting just 121,000 jobs. The labor force participation rate slipped again to 62.7%. The last 3-months have seen some very disappointing job creation data that, like several other metrics, casts shade over the economic recovery theme.
The trade deficit widened again in April hitting 47.6 billion as imports increased 1.9 billion and exports slipped .5 billion. This report will subtract fractionally from 2nd quarter economic growth.