U.S. stock futures rose +0.8% this morning after the government's employment report for April added 223,000 jobs in April, and unemployment ticked down to 5.4%, which could affect when the U.S. Federal Reserve raises interest rates for the first time since 2006.
U.S. job growth likely rebounded last month and the unemployment rate probably dropped to a near seven-year low, signs of a pick up in economic momentum that could keep the Federal Reserve on track to hike interest rates this year.
Here is the current market situation from CNN Money
European markets are broadly higher today with shares in London leading the region. The FTSE 100 is up 2.05% while Germany's DAX is up 1.39% and France's CAC 40 is up 0.82%.
15 minute SP 500 future view at 08.51 this morning.
Gasoline prices have been rising, spurred by a rebound in crude oil and also in anticipation of strong demand this summer. Despite recent gains, prices at the pump remain lower than in recent years, likely enticing more Americans to hit the road this vacation season.
ATHENS/ROME (Reuters) - Greek Prime Minister Alexis Tsipras forecast a happy end soon to fraught negotiations with creditors on a cash-for-reform deal, and the chairman of euro zone finance ministers said talks were making progress, though not enough for a deal next Monday.
SHANGHAI (Reuters) - When Alibaba Group Holding Ltd's eccentric founder Jack Ma stepped down as CEO two years ago, he declared "the Internet belongs to young people," and promised that most of the company's leaders born in the 1960s would soon retreat from management.
The last two months have been nothing if not a lesson in the disater that is the economic-forecasters of the world. With a 3-sigma beat followed by a 5-sigma miss, hope abounds that April will be the 'goldilocks' print - just cold enough to leave the Fed on hold and just hot enough to 'prove' growth remains. Goldman expects nonfarm payroll job growth of 230k in April, in line with consensus expectations. While labor market indicators were mixed in April, the employment components of service sector surveys were strong and better weather conditions should provide a boost. In addition, they see some upside risk to the forecast from a calendar effect, and expect the unemployment rate to decline by one-tenth to 5.4% and average hourly earnings to rise 0.2%.
Not a great track record the last few months... extreme outlier prints...
Via Goldman Sachs' Jan Hatzius,
We forecast nonfarm payroll job growth of 230k in April, in line with consensus expectations. While not all major labor market indicators improved in April, jobless claims fell, the employment components of most service sector surveys improved, and weather conditions were more favorable. If realized, we would view a 230k gain in April as a strong print in light of last month's soft gain of 126k, the broader weakness seen across major economic indicators, and our expectation that the trend rate of payroll gains is likely to be closer to 200k in coming months than the 261k average seen over the last year. We also see some upside risk to our baseline forecast from a calendar effe ...
LONDON (Reuters) - World bond and stock markets rose on Friday after a bruising week and sterling jumped to a two-month high after the business-friendly Conservative party won Britain's national elections.
WASHINGTON (Reuters) - U.S. job growth likely rebounded last month and the unemployment rate probably dropped to a near seven-year low, signs of a pick up in economic momentum that could keep the Federal Reserve on track to hike interest rates this year.
PORTLAND, Oregon (Reuters) - Sports shoe maker Nike Inc put its weight behind President Barack Obama's push for a trade deal with Asian countries on Friday with a promise to create up to 10,000 U.S.-based manufacturing jobs if the pact is approved.
TOKYO (Reuters) - Toyota Motor Corp said it will crank net profit up to a third straight record this year as cost cuts and rising U.S. sales offset weaker business elsewhere, building on bumper earnings last year powered largely by foreign-exchange gains.
TOKYO (Reuters) - Japan's Takata Corp said it expects to return to profit this financial year on higher Asian and U.S. sales, but the troubled company made few provisions for possible costs related to a massive global recall of its exploding air bags.
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