From the Desk - Economic Commentary
Brandon Casey, Member Strategist - 5/16/2024
U.S. stocks are marginally higher in early trading Thursday morning. The DJIA is approaching 40,000, a level never seen before, and the S&P 500 surpassed 5.300 on Wednesday for the first time ever. New York Fed President John Williams said this morning that despite softer inflation numbers, he is not ready to pursue rate cuts.
Looking at economic data today, initial jobless claims fell to 222,000, just above expectations of 220,000. Initial claims were at 232,000 last week. Continuing claims were slightly higher at 1.79 million.
U.S. housing starts increased 5.7% in April to an annual rate of 1.36 million, below expectations of 1.40 million. Single-family starts fell 0.4% to an annual rate of 1.03 million. Building permits fell 3.0% for the month to an annual rate of 1.44 million, below expectations of 1.48 million.
Wrapping up data releases, import prices were up 0.9% in April, tripling expectations, and prices were up 1.1% over the last year. Excluding fuel, import prices were up 0.7% for the month. Export prices were up 0.5% for the month, but down 1.0% over the past year. Lastly, industrial production was unchanged in April as the manufacturing component fell 0.3%.
U.S. Treasury yields are higher this morning, with the 2-year Treasury yield up 3.8 basis points to 4.77%, the 5-year Treasury yield up 2.6 basis points to 4.38%, and the 10-year Treasury yield up 0.1 basis points to 4.36%. Advance rates are mostly flat today.
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