5/02/2011 – theGrio and CNBC Market Update
VIDEO - Where are the jobs? We'll find out with the April jobs report...
Besides a pretty good string of corporate earnings, investors had several economic reports to digest last week. The Federal Reserve left its key interest rate – which affects mortgage, credit card and student loan rates – unchanged and vowed to continue its bond purchase program. The economy grew much slower than expected in the first quarter and new claims for jobless benefits rose to their highest level since January.
In the week ahead, investors expect earnings reports from AVON, VISA, and Kellogg, as well as data on unemployment, manufacturing and consumer finances.
Where are the jobs? We’ll find out with the April jobs report. In March the unemployment rate dipped slightly to 8.8 percent – with gains in manufacturing, business services and health care. But African American unemployment rose slightly to 15.5 percent and black teen unemployment jumped to 42.1 percent, the highest of any group.
We’ll get a read on manufacturing with the April report from the Institute for Supply Management. In March manufacturing activity dipped slightly to a 61.2 reading, due to a slowdown in new orders and export orders. A reading over 50 signals expansion.
We’ll gain insight on consumer finances with the March consumer credit report – which tracks credit card, auto and student loans. In February consumer credit rose by 7.6 billion dollars driven by an increase in auto loans but Americans cut back on credit card use.
