Mid Week Update
Last week’s drop in the Chinese stock market caused weakness in the opening and into mid-day trading as the popular averages were down slightly but have since changed course. Several mergers and acquisitions helped stem the downward tide and propel today’s nice reversal. Commerce department reports showed a lack of demand for cars, boats, and airplanes sending the Dow Transports lower however, and that has not changed.
Wednesday brings the revised first-quarter productivity and unit labor cost reports, with expectations that non-farm productivity growth will be revised to show a 1% annual growth rate. Virginia Fed Reserve Bank Pres Jeff Lacker speaks on; you guessed it, inflation, while New York Security Analysts hold their annual metals and mining conference.
Thursday brings the Labor Department’s report on jobless claims for the week ended June 2, expected to come in at 310,000 while Freddie Mac reports on mortgage interest rates. The nation’s largest retailers post same-store sales for May with that number expected to show an increase and the Federal Reserve reports on consumer credit for April.
The week closes Friday with the Commerce Department’s international trade report for April expected to show a small decrease in the deficit over March’s number. That’s it for the week’s economic news that will power the markets! More soon!
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