Jobless Claims (388K vs 375K expected & prior revised higher 389K) allowed for a beat with (ahem) revisions. Pending Home Sales (4.1% vs 1% expected & prior at -.5%) is what bulls seized on shrugging off poor employment data. Bulls see claims data as just more of the same. But people are also losing their benefits with 700K expected to be out of luck by next month.
NEW YORK (ETF Digest) —
It seems investors were biding their time Thursday ahead of a long holiday weekend and the unique Friday holiday release of the April Employment Report with markets closed. It would seem most investors don’t wish to expose themselves to potential market fluctuations when markets are closed.
Thursday’s Jobless Claims report continued the consistent trend of revising previous claims higher allowing for a headline “beat”. The data showed 357K claims vs 363K higher previously (adjusted higher from 359K). This led to headlines like: “Jobless Claims Lower” and so forth.
Consumer Discretionary (XLY) shares were much in focus as heavyweight McDonalds (MCD) led the sector higher overall. Financials (XLF), Materials (XLB) and Homebuilders (ITB) led the way lower.
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Read more: Waiting on Jobs Report: Dave’s Daily
Economic data Friday was mixed and depending on your vision or bias was spun to suit. Personal Income & Spending was a dangerously mixed bag with income down and spending up: (Personal Income .2% vs .4% expected & prior .3%. Spending .8% vs .6% expected & .4% prior. Core PCE was .1% vs .2% prior). With spending up a good portion of this goes to food and energy excluded in the “core” PCE. Since the “core” stuff is what the Bernank et al focus on it will justify ongoing ZIRP and perhaps more QE. It’s all contrived and absurd frankly.
Later the Chicago PMI (62.2 vs 63 expected & prior 64) also disappointed with a miss but bulls didn’t mind.
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Go here to read the rest: The First Quarter Gets Some Window Dressing: Dave’s Daily
“Never put off until tomorrow what you can do the day after tomorrow”
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Continued here: Greece Keeps the Lady Waiting: Dave’s Daily