Reply To: Traders Market Weekly: Fed and BOJ Dribble Ahead

#74674
Truman
Participant

Initial jobless claims for the week ending June 1 increased by 8,000 to 229,000 (consensus 216,000). Continuing jobless claims for the week ending May 25 increased by 2,000 to 1.792 million.

The key takeaway from the report is the uptick in initial jobless claims, which will be seen as a sign of some loosening in the labor market.

Q1 Productivity was revised down to 0.2% (Briefing.com consensus 0.3%) from 0.3%. Q1 Unit Labor Costs were revised down to 4.0% (consensus 4.7%) from 4.7%.

The key takeaway from the report is the downward revision to unit labor costs. Although a backward-looking report (we’re two-thirds done with Q2), that revision will take out some of the labor cost inflation sting seen in the advance report.

The April trade deficit widened to $74.6 billion (consensus -$76.5 billion) from an upwardly revised $68.6 billion (from -$69.4 billion). Exports were $2.1 billion more tan March exports, but imports were $8.0 billion more than March imports.

The key takeaway from the report is that there was an uptick in both exports and imports in April, which is a reflection of increased global trade activity; however, with imports exceeding exports, that will create a drag on Q2 GDP.