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Registered Investment Adviser Caleb Lawrence 

As per expectations the Fed left rates unchanged at the conclusion of the Federal Open Market Committee meeting today. Given how close the yield curve is to inverting that’s probably just as well. The Fed went on to note that inflation is more or less running at the desired 2% level and that the economy is doing well generally.

Auto sales slipped to 17.2 million units annualized in April, per Ward’s Auto. Most manufactures reported small declines with the exception of Fiat-Chrysler, Subaru and Volkswagen AG. Luxury auto makers did particularly well led by a 17% gain in Volvo sales. Sales incentives remained above 10% for 20 of the last 21 month’s.

Mortgage activity slipped 2.5% last week as per the Mortgage Bankers Association or MBA. Refi’s dropped 3.5% while purchase apps fell 1.6%. The 30-year contract rate for a jumbo loan increased to 4.69%.

Payroll company ADP reports an as expected 204,000 new jobs in April, a 5-month low. The official Bureau of Labor Statistics or BLS report is due Friday, expectations are for an additional 190,000 new jobs.

The Institute for Supply Management New York Index jumped 10.3 points in April on strength in employment. Future outlook and quantity of purchases both declined notably for the month.

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