(As of 7:45 am pacific)
Stocks open modestly higher on a flood of economic
reports. The Labor dept. reported today
that US jobless claims rose last week to the highest level in 2.5 months. The number of people applying for jobless
benefits jumped by 13,000 last week to 380,000.
Many analysts believe the rise was due to seasonal quirks with spring break
allowing many school workers to apply for jobless benefits as well as seasonal
adjustments with the Easter holiday. The
4 week average, which is a more accurate reading rose slightly by 4,250 to
368,500. The PPI (producer price index)
was unchanged last month following a 0.4% increase in February. Economists forecasted a 0.1% decline for
March. When you strip the volatile
categories of food and energy prices, the core PPI (which is a more accurate
gauge of inflationary pressures) rose by 0.3% for the month of March. Core prices have risen 2.9% over the previous
12 months. According to the Commerce
dept. the US trade deficit narrowed in February recording the largest
percentage drop since May 2009. The
deficit hit 46 billion in February compared to 52.5 billion in January – a 12.4%
drop. Exports rose 0.1% on the month to
$181.2 billion, while imports fell 2.7% to $227.2 billion. US consumer confidence remained at a 4 year
high last week. The reading came in at
-32.8, second only to the previous week’s reading of -31.4. The Fed’s “Beige Book” came out yesterday
afternoon, with comments generally in line with expectations. According to the report, the US economy
continues to grow at a “modest to moderate” pace – the same phrase that’s been
used in the precious 2 reports. The Fed
also announced they plan to keep interest rates low. Oil was up slightly to 102.93 and gold trade
flat to open at 1661. The US dollar was
down and 10 yr. treasury yields were flat at 2.04%. 30 yr. mortgage rates drifted down to
3.91%. The CBOE volatility index was
down 4.25% to 19.17.
