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Weekly Economic Update for the Week of June 7, 2010
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Jobless rate ticks down 0.2%. The news didn’t impress Wall Street: while May’s unemployment rate fell to 9.7% and the economy added 431,000 jobs, 390,000 of them represented temporary U.S. Census Bureau hires. Still, the number was better than the 9.8% reading economists expected.1
ISM: continuing expansion in key sectors. For the tenth straight month, the Institute for Supply Management’s manufacturing index showed growth, though May’s 59.7 reading came under April’s 60.4 mark. The Institute’s non-manufacturing index read 55.4 again for May; it has shown the service sector expanding for the last five months.2,3
April sees rise in pending home sales. Spurred by the federal tax credit deadline, more buyers rushed to sign contracts. The National Association of Realtors reported its pending home sales index at 110.9 for April, a 6.0% gain from March and the highest reading since October.4
Factory orders up 1.2%. The April increase reported by the Commerce Department was actually below the 1.8% gain forecast in a Reuters poll of economists; March’s gain was revised up to 1.7%.5
Stocks fight for stability. The Dow closed below 10,000 Friday as Wall Street dissected the May jobless report and glimpsed new headlines about
| % Change | Y-T-D | 1-Yr Chg | 5-Yr Avg | 10-Yr Avg |
| DJIA | -4.76 | +13.50 | -1.01 | -0.82 |
| NASDAQ | -2.20 | +19.95 | +1.43 | -4.19 |
| S&P 500 | -4.50 | +12.99 | -2.19 | -2.74 |
| Real Yield | 6/4 | 1 Yr Ago | 5 Yrs Ago | 10 Yrs Ago |
| 10YrTIPS | 1.26% | 1.83% | 1.61% | 4.34% |
(Source: CNBC.com, BigCharts.com, ustreas.gov, bls.gov, 6/4/10)6,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends
Citations.
1 -blogs.barrons.com/stockstowatchtoday/2010/06/04/dow-sp-futures-sink-on-disappointing-jobs-number/ [6/4/10]
2 - ism.ws/ismreport/mfgrob.cfm [6/1/10]
3 - ism.ws/ISMReport/NonMfgROB.cfm [6/3/10]
4 - abcnews.go.com/Business/wireStory?id=10805353 [6/2/10]
5 - reuters.com/article/idUSN0219014320100603?type=marketsNews [6/3/10]
6 - cnbc.com/id/37508601 [6/4/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F4%2F09&x=0&y=0 [6/4/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F4%2F09&x=0&y=0 [6/4/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F4%2F09&x=0&y=0 [6/4/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F3%2F05&x=0&y=0 [6/4/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F3%2F05&x=0&y=0 [6/4/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F3%2F05&x=0&y=0 [6/4/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F5%2F00&x=0&y=0 [6/4/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F5%2F00&x=0&y=0 [6/4/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F5%2F00&x=0&y=0 [6/4/10]
8 - ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [6/4/10]
8 - ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [6/4/10]
9 - treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]
