Wednesday, May 6, 2015

Economic Journal - Wednesday, 5/6/2015



(As of 7:10 am PST)

Stock futures pointed to a higher open on Wall Street Wednesday, a day after the S&P500 suffered its biggest one-day percentage decline in 6 weeks. The relief rally was short lived however, with all three major US benchmarks erasing gains within the first half hour of trading. Economic data is disappointing this morning. According to payrolls processor, ADP, the private sector added just 169,000 jobs in April coming in below expectations. The ADP report is often used as an indicator of the more reliable non-farm payrolls report which is due out this Friday. In other economic news, a report on US productivity showed productivity in the first quarter declined 1.9% for the second straight quarterly decline – the first time this has happened since 2006. Overseas action is mixed as Asian markets tumbled for the second straight day while European stocks see-sawed throughout the session as gains in the euro and bond yields caught investors by surprise. Gold is flat while oil continues to surge, up 2.75% to $62 per barrel.

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