Economic data released this morning showed continuing carnage taking place in the American economy. The numbers are nothing but shocking. However, with the Fed ‘all in’ to do whatever it takes to prevent Americans from feeling pain, markets continued to rise this week on optimism about the second half of the year.
Equity futures were higher before the open today; however, horrendous economic data out of Europe stalled the rally and stocks have been treading water this morning, although certain stories continue to rally, such as Boeing, where the bad news is mostly out.
Oil markets also rallied today.
After adjusting for inflation, spending slumped 7.3%, also the most ever and underscoring data out Wednesday that showed the sharpest drop in consumer spending since 1980 during the first quarter, wrote Zero Hedge.
The report also showed nominal incomes dropped the most since January 2013. reflecting a 3.1% decrease in wages and salaries as a result of the pandemic.
Personal Consumption Expenditures – Price Index (YoY) (Mar) printed at 1.3% vs 1.7% consensus estimate.
Core Personal Consumption Expenditure – Price Index (MoM) (Mar) printed at the estimate of -0.1%.
Personal Income (MoM) (Mar) printed at -2.0% vs -1.5% estimate.
Continuing Jobless Claims (Apr 17) printed at 17.992M vs 19.238M estimate.
Personal Consumption Expenditures – Price Index (MoM) (Mar) printed at -0.3%.
Initial Jobless Claims (Apr 24) printed at 3839k vs 3500k estimate.
Unemployment Cost Index Q1 printed at 0.8% vs 0.6% estimate.
Personal Spending (Mar) printed at -7.5% vs -5.9% estimate.
Core Personal Consumption Expenditure – Price Index (YoY) (Mar) printed at 1.7% vs 1.6% estimate.
Chicago Purchasing Manager’s Index (Apr) printed at 35.4 vs 38. estimate.
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