Registered Investment Adviser Caleb Lawrence
The major averages managed to recover almost all of their early losses to enter the final hour about even despite disappointing data. From a technical perspective market action since the early declines this year has seen weaker and weaker bounces suggesting a breakdown of support is close.
Productivity advanced a less than expected .7% in the first quarter. Unit labor costs jumped 2.7% to mark a 2nd consecutive quarter of costs significantly exceeding productivity gains. On a year ago basis productivity is up 1.3% while unit labor costs have advanced 1.1%.
March International Trade Data fell 8.8 billion to 49 billion as imports dropped 4.6 billion and exports increased 4.1 billion. So far, the trade war hasn’t gone live, but stories of trading partners sourcing products elsewhere are growing.
The Institute for Supply Management Non-manufacturing or Services Index slipped 2 points in April to 56.8. The details were unremarkable, prices paid remains very high.
Factory orders gained a slightly better then expected 1.6% in March. The proxy for business spending non-defense capital goods ex-aircraft slipped .4% a 3rd decline in the last 4-month’s.