Friday, May 4, 2007

Employment Data and Its Impact

So the economy adds the fewest jobs in a couple of years (before revisions were made) in April with April non farm payrolls up 88k, but with everything seeming to be a takeover candidate on Wall Street these days, stock futures are taking off. A relatively weak number for non farm payrolls (consensus was 100k) had been expected and there were no major revisions to the March data. More figures here: Economic Report: Job growth sluggish in April.

10 yr treasury even up a few ticks at 4.66% right near its average of 4.65% this year. This report cements the thought the Fed next week will stand pat on interest rates and leave Fed Funds at 5.25% perhaps with a smidgen of extra chance of a rate cut somewhere down the road if this type of data continues to show further weakness.

On the currency front: euro up 0.3% at $1.3587; dollar down 0.2% at 120.13 yen

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