Monday, May 11, 2009

Money Markets May 4th –8th 09

The US dollar got weaker this past week, as stocks and commodities continued to strengthen as incoming data persists to suggest the worst of recession is over.

US April jobs data were also not as bad as forecasted, though the unemployment rate continues to rise. According to the Department of Labor statistics; “Nonfarm payroll employment continued to decline in April (-539,000), and the unemployment rate rose from 8.5 to 8.9 percent. Since the recession began in December 2007, 5.7 million jobs have been lost. In April, job losses were large and widespread across most private-sector industries. Overall, private-sector employment fell by 611,000. The Unemployment rates rose in April for adult men (9.4 percent) and blacks (15.0 percent). The jobless rates for adult women (7.1 percent), teenagers (21.5 percent), whites (8.0 percent), and Hispanics (11.3 percent) were little changed over the month. The unemployment rate for Asians was 6.6 percent in April”.
The data above shows that the recession is deepening but investors saw an optimistic side. The job losses (539,000) were less than lost in February (681,000) and March (699,000). Since March 9th, the Standard & Poor (S&P)’s 500-stock index has grow 37.4%, and it is up to 2.9% for the year.
In the week of May 4th (last week)
The YIELD on the 10-year Treasury note rose to 3.29%, from 3.15%.
The DOW JONES industrial average increased 362.24 points (4.4%), to close at 8,574.65.
The S&P 500 climbed 51.71 points (5.9%), to close at 929.23.
The NASDAQ composite index gained 19.8 points (1.2%), to close at 1,739.
Here are the major economic reports, key data and events to look at in the week ahead;
Monday: The Federal Chairman Bernanke will be delivering a speech on stress-test on Banks.
Tuesday: the trade balance for the period of March, expected -$29 billion the change from previous -3billion.
Wednesday: Retail sales, import prices and business inventories period of March; expected -1.1% the change from previous +0.2%.
Thursday: producer price index and the jobless claims data. The producer price index of April is expected +0.1% a change from previous is +1.3%.
Friday is full of activity with industrial production (period of April expected -0.6% change from previous +0.9%) consumer prices, NY Empire manufacturing, international capital flows and the University of Michigan consumer sentiment index.

Disclaimer: The information and opinions in this article are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this article are subject to change without notice. This article has been prepared without regard to the specific investment objectives, needs of any particular recipient and financial situation. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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