The data this morning was mixed. Weekly jobs claims came in @ 344k versus the expected 320k which was rate friendly. Personal income rose 0.5% as expected however spending rose 0.9% versus the expected 0.6% increase. PCE core inflation rose 0.2% as expected
The ISM Index was slightly higher than expected @ 54.9 versus the 54.5 estimate.
The Fed kept rates unchanged yesterday afternoon. They indicated economic activity picked up but the unemployment rate remains elevated. The taper continued as expected. “Beginning in May, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $20 billion per month rather than $25 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $25 billion per month rather than $30 billion per month.”
We still have the heavyweight employment report and factory orders data Friday morning. The Fed noted they will continue to look at the employment situation in their decision making. There is no bigger employment release than the monthly report tomorrow morning.
Hope this information is helpful.
Mark Bowers, Top Producer/Realtor Bloomington IL