Jobless rate ticks down 0.2%. The news didn’t impress Wall Street: while May’s unemployment rate fell to 9.7% and the economy added 431,000 jobs, 390,000 of them represented temporary U.S. Census Bureau hires. Still, the number was better than the 9.8% reading economists expected.1
ISM: continuing expansion in key sectors. For the tenth straight month, the Institute for Supply Management’s manufacturing index showed growth, though May’s 59.7 reading came under April’s 60.4 mark. The Institute’s non-manufacturing index read 55.4 again for May; it has shown the service sector expanding for the last five months.2,3
April sees rise in pending home sales. Spurred by the federal tax credit deadline, more buyers rushed to sign contracts. The National Association of Realtors reported its pending home sales index at 110.9 for April, a 6.0% gain from March and the highest reading since October.4
Factory orders up 1.2%. The April increase reported by the Commerce Department was actually below the 1.8% gain forecast in a Reuters poll of economists; March’s gain was revised up to 1.7%.5
Stocks fight for stability. The Dow closed below 10,000 Friday as Wall Street dissected the May jobless report and glimpsed new headlines about Hungary facing a potential debt crisis. It was a volatile week and ultimately a losing week, with the Dow ending at 9,931.22, the NASDAQ at 2,219.17 and the S&P 500 at 1,064.88.6
| % Change | Y-T-D | 1-Yr Chg | 5-Yr Avg | 10-Yr Avg |
| DJIA | -4.76 | +13.50 | -1.01 | -0.82 |
| NASDAQ | -2.20 | +19.95 | +1.43 | -4.19 |
| S&P 500 | -4.50 | +12.99 | -2.19 | -2.74 |
| Real Yield | 6/4 | 1 Yr Ago | 5 Yrs Ago | 10 Yrs Ago |
| 10YrTIPS | 1.26% | 1.83% | 1.61% | 4.34% |
(Source: CNBC.com, BigCharts.com, ustreas.gov, bls.gov, 6/4/10)6,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends.
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This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of Statler Financial Services, Inc. This information should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. http://www.montoyaregistry.com http://www.petermontoya.com
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Citations.
1 – blogs.barrons.com/stockstowatchtoday/2010/06/04/dow-sp-futures-sink-on-disappointing-jobs-number/ [6/4/10]
2 – ism.ws/ismreport/mfgrob.cfm [6/1/10]
3 – ism.ws/ISMReport/NonMfgROB.cfm [6/3/10]
4 – abcnews.go.com/Business/wireStory?id=10805353 [6/2/10]
5 – reuters.com/article/idUSN0219014320100603?type=marketsNews [6/3/10]
6 – cnbc.com/id/37508601 [6/4/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F4%2F09&x=0&y=0 [6/4/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F4%2F09&x=0&y=0 [6/4/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F4%2F09&x=0&y=0 [6/4/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F3%2F05&x=0&y=0 [6/4/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F3%2F05&x=0&y=0 [6/4/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F3%2F05&x=0&y=0 [6/4/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F5%2F00&x=0&y=0 [6/4/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F5%2F00&x=0&y=0 [6/4/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F5%2F00&x=0&y=0 [6/4/10]
8 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [6/4/10]
8 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [6/4/10]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]
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