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Market Direction Is Important –
Updated Chart of the S&P 500 and Secondary Signals
Of our Four secondary indicators under our MTI:
Relative Strength Index (RSI)-Positive
Chaikin Money Flow (CMF)-Positive
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Stocks finished lower on Friday following a weaker jobs report, with the S&P 500 ending the week down .3%.
This week data will be released on retail sales, inflation, small business optimism and the Job Openings and Labor Turnover survey.
The US created just 98,000 jobs in March, marking the smallest gain in nearly a year. At the same time, the jobless rate fell to 4.5%, the lowest in almost ten years, as fewer people entered the labor market.
The Fed’s FOMC meeting minutes showed that “several” officials pushed for a faster pace to rate hikes as inflation neared its target, noting that without slack in the labor market the jobless rate falling below it “natural rate” poses a “significant upside risk of inflation”. Other officials saw a “limited risk of a marked pick up in inflation as the labor market tightened further”. Officials expected a weak first quarter GDP, and believe the slowdown will be temporary.
The trade deficit shrank to $43.6 billion in February as exports rose to $192.9 billion and imports slipped to $236.4 billion.
The Atlanta Fed’s GDPNow forecast for first quarter growth fell to .6% following the release of data on wholesale trade and the service sector.
Manufacturing slowed in March, as the ISM index dipped to 57.2%, however, a measure of manufacturing hiring rose to a six-year high.
Construction spending rebounded .8% in February as building picked up with the month’s warmer weather.
After hitting a 16-month high in February, a measure of the service sector slipped in March. The ISM non-manufacturing index declined to 55.2%, marking the lowest level since President Trump was elected.