The KUIK Morning Market Report for Friday, April 28:
Markets are mixed.
Index
Direction
Change
Units
Index
Time
Change
Dow Jones Industrial Average
Down
(19)
points
20,962
7:14 AM
S&P500
Down
-0.1%
percent
2,388
(1.17)
Nasdaq Composite
Up
0.1%
percent
6,053
4.28
30 Year Treasury
Up
2
Basis Points
2.98
Annual Yield
The Commerce Department reports the US economy was off to a slow start in the first quarter. Gross domestic product increased at a 0.7% annual pace in the first three months of the year, down from 2.1% in the third quarter of 2016 and 3.5% in the fourth. The drop was most due to the smallest increase in consumer spending since the end of 2009, reflecting fewer sales at car dealers. Spending rose just 0.3%, down from 3.5% at the end of 2016. Government spending fell 1.7%, the largest drop in four years. Inflation hit 2.4% annually according to the personal-consumption expenditures index, the biggest jump since spring 2011.
The Labor Department reports the employment cost index jumped 0.8% in the first quarter for the fastest rise since 2007. Economists expected only 0.6. The index how much companies, governments, and nonprofits pay their employees in wages and benefits. The index has grown 2.4% over the past 12 months, the fastest annual pace since 2015 and the second best showing since 2008.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
