Money Talk Podcast

Landaas & Company newsletter  September edition now available.

Advisors on This Week’s Show

Kyle Tetting

Art Rothschild

Mike Hoelzl

(with Joel Dresang, engineered by Jason Scuglik)

Week in Review (Sept. 4-8, 2023)

Significant Economic Indicators & Reports

Monday

Markets and government agencies closed for Labor Day

Tuesday

The Commerce Department said factory orders declined in July for the first time in five months. The measure of demand for manufactured goods slipped 2.1% after gaining 2.3% in June. Through the first seven months of 2023, orders were up a mere 0.5% from the year before. Excluding requests for transportation equipment, which has an outsized effect on the indicator, orders rose 0.8% from June but were down 1.6% from July 2022. Orders for core capital goods, a proxy for business investments, rose 0.1% for the month and were up 2.3% from the year before.

Wednesday

The U.S. trade gap widened by 2% in July to $65 billion. Exports rose 1.6% from June, led by automotive vehicles. Imports increased 1.7%, led by cell phones, semiconductors and industrial supplies. The Bureau of Economic Analysis reported that through July, the deficit declined 21% from the year before with a 1.6% gain in exports and a 4.3% drop in imports.

The U.S. service sector expanded in August for the eighth month in a row and at the fastest pace since February. The Institute for Supply Management said its survey of purchasing managers showed general optimism toward business and economic conditions with signs of accelerated growth. The trade group said the index suggested the U.S. economy was growing at an annual rate of 1.6%.

Thursday

The four-week moving average of initial unemployment claims fell for the first time in four weeks, dropping to 38% below the 56-year average, a sign that employers continue to be reluctant about letting workers go. The Labor Department reported that total claims stayed steady from the week before at 1.7 million, which was up 28% from the year before.

Worker productivity rose at an annual rate of 3.5% in the second quarter, according to the Bureau of Labor Statistics. That was down from a previous estimate of 3.7%. The annual rate of output rose 1.9% in the quarter while the hours worked sank 1.5% - the    first quarterly decline in three years. Since the second quarter of 2022, productivity rose 1.3%, the first such increase since the end of 2021. That 1.3% matched the annual rate of productivity growth since the end of 2019, which was slightly below the pace during the previous economic cycle, which started in 2007.

Friday

No significant reports

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 13762, down 270 points or 1.9%

Standard & Poor’s 500 – 4457, down 58 points or 1.3%

Dow Jones Industrial – 34577, down 261 points or 0.7%

10-year U.S. Treasury Note – 4.26%, up 0.08 point

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Landaas & Company newsletter  September edition now available.

Advisors on This Week’s Show

Kyle Tetting

Adam Baley

Kendall Bauer

(with Max Hoelzl, engineered by Jason Scuglik)

Week in Review (Aug. 28-Sept. 1, 2023)

Significant Economic Indicators & Reports

Monday

No major releases

Tuesday

Higher mortgage rates may be dampening demand for home buying, but house prices continued to rise in June, according to the S&P CoreLogic Case-Shiller national index. Prices were unchanged from the year before, but the fifth monthly increase in the index suggested a return to accelerating prices after months of slowdown pegged to higher mortgage rates. Half of the cities in a 20-city composite index hit record prices in June.  And though broad gains "could be truncated by increases in mortgage rates or by general economic weakness," a spokesperson for the longstanding measure said analysts foresee further price gains.

With lower expectations for stocks and higher expectations for interest rates, consumer confidence waned in August, offsetting two prior months of gains, the Conference Board reported. The business research group saw renewed concerns about prices for groceries and gas despite months of slower inflation, and consumers expressed less confidence in the job market. The Conference Board said expectations overall were barely above a level that typically indicates recession.

Employer demand for workers slowed in July with job openings declining to 8.8 million posts, the lowest since March 2021. As many as 12 million openings were posted in the spring of 2022, according to the Bureau of Labor Statistics, but demand still remained well above the pre-pandemic high of 7.6 million openings. In a sign that workers may be losing confidence in the labor market, the number of workers quitting their jobs to seek other positions decreased in July, especially at larger employers.

Wednesday

The U.S. economy grew at a 2.1% annual pace in April through June, down from an initial estimate of 2.4%. The Bureau of Economic Analysis said it revised gross domestic product lower because inventory buildups and fixed commercial investments weren’t as strong in the second quarter as earlier data suggested. State and local governments spent slightly more than initially estimated. The pace of consumer expenditures, which generate about two-thirds of economic activity, was revised up to 1.7%. The Federal Reserve Board’s favorite measure of inflation, the Personal Consumption Expenditures index, rose 3.7% from the second quarter of 2022, the slowest pace in more than two years.

The National Association of Realtors said its pending home sales index rose 0.9% in July. The monthly gain was the second in a row, but commitments to buy houses were down 14% from July 2022. The trade association said it sees potential for further growth in home sales but acknowledged ongoing challenges from higher mortgage rates and limited inventory.

Thursday

The four-week moving average for initial unemployment claims rose for the fourth week in a row, though it remained 35% below the 56-year average, suggestingcontinued reluctance by employers to let workers go. According to the Labor Department, total claims rose 0.5% from the week before to 1.7 million, which was up 27% from the 1.4 million claims the same time last year. Two years ago, claims exceeded 12 million.

Personal spending rose 0.8% in July, the most since January, the Bureau of Economic Analysis reported. The spending increase dwarfed the month’s 0.2% gain in personal income, resulting in the personal saving rate declining to 3.5% of disposable income, down from 4.3% in June and 9.3% just before the COVID-19 pandemic. The PCE inflation index rose 3.3% from July 2022, up from a 3% rate in June.

Friday

U.S. employers continued adding jobs in August, and the unemployment rate ticked up as more job seekers entered the pool. The Bureau of Labor Statistics said payrolls expanded by 187,000 jobs, a quicker pace than in June and July but down from a 12-month average of 271,000. Health care and leisure/hospitality businesses added the most jobs. The average hourly wage rose 4.3% from the year before, outpacing overall inflation for the fourth month in a row. The unemployment rate jumped to 3.8% from 3.5% in July, reaching the highest rate in a year and a half.

The manufacturing sector contracted in August for the 10th month in a row. The Institute for Supply Management reported that the contraction slowed slightly from July but said none of the components in its index suggested growth. Based on past relationships between the index and gross domestic product, the group said the overall economy was receding at a 0.4% annual rate.

The Commerce Department said construction spending rose 0.7% in July, driven by spending on housing and manufacturing. Residential spending accounts for 45% of the total outlay and increased 1.4% from June, led by single-family housing. Manufacturing, representing 10% of all construction spending, grew 1.1% for the month and was up 71% from the year before.

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 14032, up 441 points or 3.2%

Standard & Poor’s 500 – 4516, up 110 points or 2.5%

Dow Jones Industrial – 34838, up 492 points or 1.4%

10-year U.S. Treasury Note – 4.17%, down 0.07 point

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Landaas & Company newsletter  August edition now available. Advisors on This Week’s Show Kyle Tetting Tom Pappenfus Mike Hoelzl (with Max Hoelzl, engineered by Blake Miller) Week in Review (Aug. 22-26, 2022) Significant Economic Indicators & Reports Monday No significant releases Tuesday The real estate market continued to struggle in July as the annual rate […]

Landaas & Company newsletter  August edition now available. Advisors on This Week’s Show Kyle Tetting Adam Baley Dave Sandstrom (with Max Hoelzl, engineered by Jason Scuglik) Not a Landaas & Company client yet? Click here to learn more. More information and insight from Money Talk Money Talk Videos Follow us on Twitter. Landaas newsletter subscribers return to the newsletter via […]

Landaas & Company newsletter  August edition now available.

Advisors on This Week’s Show

Kyle Tetting

Adam Baley

Dave Sandstrom

(with Max Hoelzl, Joel Dresang, engineered by Jason Scuglik)

Week in Review (Aug. 7-11, 2023)

Significant Economic Indicators & Reports

Monday

In a sign of weakening consumer spending, outstanding credit card debt slowed in June. The Federal Reserve reported a 0.6% decline in the annual rate of revolving consumer debt outstanding, the first decrease since April 2022. The pace of total consumer debt rose 4.3% from May, including a 6% jump in non-revolving debt – which is mostly car financing and student loans. With nearly 70% of U.S. economic growth relying on consumer spending, the drop in credit card debt suggests a drop-off in commitment to buying on credit. Credit card debt in June was still up about 30% from where it plunged after the COVID-19 pandemic.

Tuesday

The U.S. trade deficit narrowed 4.1% in June to $65.5 billion, the Bureau of Economic Analysis reported. Exports declined 0.1% from May, led by industrial supplies and consumer goods. Imports fell 1%, despite higher U.S. demand for overseas automobiles, gems, artwork and non-monetary gold. Through the first half of 2023, the balance between what Americans buy from overseas and what they sell abroad narrowed 22% from the same time last year. Exports fell 2.5% in that period; imports fell 4%.

Wednesday

No major releases

Thursday

Higher costs for shelter accounted for 90% of the rise in inflation in July. The Bureau of Labor Statistics said the Consumer Price Index, the broadest measure of inflation, rose 0.2% from June. Prices for car insurance and education also rose, while the cost of air fare, used vehicles and medical care declined. Compared to the year before, the CPI rose to 3.2% from a 3% inflation rate in June. That was the first acceleration in the rate since it crested above 9% in June 2022. The core CPI, which excludes volatile food and energy costs, rose less than 0.2% from June, tied with June for the smallest gain since February 2021. The core CPI rose 4.7% from the year before, the lowest since October 2021.

The four-week moving average for initial unemployment claims rose for the first time in six weeks but stayed below the all-time average by 37%, according to data released by the Labor Department. The total number of claims fell 0.4% from the week before to 1.8 million, up from fewer than 1.5 million the year before.

Friday

Inflation on the wholesale level rose 0.3% in July, led by increased prices for services. The Bureau of Labor Statistics said its Producer Price Index rose 0.8% from July 2022, up from 0.7% in June but down from 11.7% in March 2022. Excluding volatile prices for energy, food and trade services, the core PPI rose 0.2% for the month – the biggest increase since a 0.3% gain in February. Since July 2022, the core PPI rose 2.7%, the lowest 12-month move since February 2021.

Consumer opinions toward the economy and their personal finances stayed above year-ago lows but below historical averages in August, according to the University of Michigan consumer sentiment index. The longstanding index hit 71.2 in a preliminary August reading, up about 42% from a record low last summer but down from the long-time average of 86. Since July, consumers felt slightly better about current conditions and slightly worse about future expectations. Survey respondents said they anticipate inflation to be about 3.3% in August 2024 and 2.9% longer term.

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 13645, down 264 points or 1.9%

Standard & Poor’s 500 – 4464, down 14 points or 0.3%

Dow Jones Industrial – 35281, up 216 points or 0.6%

10-year U.S. Treasury Note – 4.17%, up 0.11 point

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Landaas & Company newsletter  August edition now available.

Advisors on This Week’s Show

Kyle Tetting

Art Rothschild

Steve Giles

(with Max Hoelzl, Joel Dresang, engineered by Jason Scuglik)

Week in Review (July 31-Aug. 4, 2023)

Significant Economic Indicators & Reports

Monday

No major reports or releases

Tuesday

Employers’ demand for workers eased slightly in June, with job openings falling to 9.6 million, the lowest in more than two years. Both hires and separations fell 5% in June, and the number of workers voluntarily quitting their jobs dipped to 3.8 million, also the lowest since 2021. That suggested employees were less confident in finding new jobs. Data from the Bureau of Labor Statistics showed openings remained still well above the pre-pandemic high of 7.5 million. Openings continued to far outnumber unemployed job seekers in June.

The manufacturing sector contracted in July for the ninth month in a row, though at a slower pace than in June, according to the Institute for Supply Management. The trade group’s index, based on surveys of purchasing managers, showed demand and production strengthening marginally. Employment indicators in manufacturing worsened with expectations that they’ll continue to decline. Based on past relationships between the index and gross domestic product, the ISM said the U.S. economy was receding at an annual rate of 0.8%.

The Commerce Department said construction spending rose for the sixth month in a row in June, gaining 0.5% from May and adding 3.5% from the year before. Housing accounted for 45% of all construction spending and was up 0.9% from the seasonally adjusted annual pace in May. Year to year, residential construction declined, except for multi-family housing. Spending on manufacturing construction increased 80% from June 2022.

Wednesday

No major reports or releases

Thursday

Worker productivity increased at a 3.7% annual rate in the second quarter, the strongest showing since the end of 2021, the Bureau of Labor Statistics. The gain came on 2.4% higher output as workers worked 1.3% fewer hours. It was the first quarter that work hours declined since the onset of the COVID-19 pandemic. Year to year, productivity rose 1.3%, the first gain since the end of 2021. Unit labor costs rose at a 1.6% annual rate and rose 2.4% from the year before. Hourly compensation, adjusted for inflation, rose at a 2.7% pace in the second quarter, but it was down 0.3% from the same time last year.

The four-week moving average for initial unemployment claims fell for the fifth week in a row, reaching its lowest level since March, 38% below the all-time average. A measure of employers’ willingness to let go of workers, the jobless claims suggested continued tightness in the labor market. The Labor Department said fewer than 1.9 million Americans claimed jobless benefits in the latest week, down nearly 3% from the week before but up 27% from the year before.

The service sector of the U.S. economy grew at a slower pace in July, according to the Institute for Supply Management. The trade group’s service index showed expansion for the seventh month in a row with fewer orders, less business activity and decreased hiring. The ISM said deliveries continued to improve following supply chain delays during the COVID-19 pandemic. The index suggested GDP was growing at a 1% annual rate.

Demand for commercial aircraft and parts propelled further growth in factory orders in June. The Commerce Department reported that total orders rose 2.3% from May, the fourth increase in a row and the sixth in seven months. Orders for commercial aircraft soared 69% from May. Excluding volatile orders for transportation equipment, orders rose 0.2% for the month and were down 1.3% from the year before, vs. a gain of  0.9% with transportation included. Core capital goods orders, a proxy for business investments, rose 0.1% from May and were up 2.6% from June 2022.

Friday

U.S. employers added 187,000 jobs in July, the Bureau of Labor Statistics reported. And while the jobs report was below the 12-month average of 312,000 additions, it marked the 31st consecutive month of gains despite a year of higher interest rates meant to slow the economy to lower inflation. The construction industry was among employers continuing to add jobs at an increased rate in July. Employment in temporary help services declined for the sixth month in a row. The unemployment rate ticked down to 3.5% from 3.6% in June, hovering around the lowest level since 1969.

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 13909, down 407 points or 2.8%

Standard & Poor’s 500 – 4478, down 104 points or 2.3%

Dow Jones Industrial – 35067, down 392 points or 1.1%

10-year U.S. Treasury Note – 4.06%, up 0.09 point

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Landaas & Company newsletter  August edition now available.

Advisors on This Week’s Show

Kyle Tetting

Adam Baley

Kendall Bauer

(with Max Hoelzl and Joel Dresang, engineered by Jason Scuglik)

Week in Review (July 24-28, 2023)

SIGNIFICANT ECONOMIC INDICATORS & REPORTS

Monday

No major releases

Tuesday

The year-to-year change in residential prices declined in May for the second month in a row. The S&P CoreLogic Case-Shiller national home price index fell 0.5% from the year before, compared to a 0.1% decline in April. Month to month, though, prices have been rising, prompting an S&P housing analyst to suggest that a deceleration in price increases that began last June bottomed out in January. For the first time in five years, cold-weather cities — Chicago, Cleveland and New York — topped the locations posting the highest price increases.

The Conference Board said its consumer confidence index rose to its highest level in two years. The business research group said slowing inflation and a tight job market boosted consumers’ views of current conditions and their outlooks. Consumer near-term expectations exceeded a level historically linked to recession, the Conference Board said. Even so, the organization repeated its forecast for a U.S. economic downturn by the end of the year.

Wednesday

The annual rate of new home sales fell in June, dropping 2.5% from May’s pace but up 24% from June 2022, when mortgage rates were starting to rise. The Commerce Department reported that the inventory of unsold houses improved marginally from May, when it was the lowest level in more than a year. The median price of new houses was $415,400, down 4% from the year before.

Thursday

U.S. economic growth accelerated in the second quarter of 2023. According to an advance report on gross domestic product from the Bureau of Economic Analysis, the economy expanded at an annual rate of 2.4% from the first three months of the year, up from a 2% pace in the first quarter. Faster growth was attributed to businesses investing in their operations and building inventory. Adjusted for inflation, real GDP was up 2.6% from the same time in 2022. Housing investments fell for the ninth quarter in a row. The PCE inflation index rose 4.4% from the second quarter of 2022, the lowest in two years.

The four-week moving average for initial unemployment claims fell for the fourth week in a row, more evidence of a tight labor market. Data from the Labor Department showed the moving average was 36% below the 56-year average, suggesting employers are reluctant to let workers go. In the latest week, 1.9 million Americans claimed jobless benefits, up 9% from the week before and up 30% from the 1.5 million the same time last year.

Manufacturing demand stayed steady in June, with durable goods orders rising for the fourth month in a row. Orders rose 4.7% from May, led by a jump in contracts for commercial aircraft. Excluding the volatile transportation category, the value of orders rose 0.6% from May, according to figures from the Commerce Department. Compared to June 2022, total orders rose 4.6% and were up 0.5% excluding transportation. Core capital goods orders, a proxy for business investment, rose 0.2% from May and 2.6% from June 2022.

The National Association of Realtors said its pending home sales index rose in June for the first time in three months. The trade association reported a 0.3% rise in the index from May with a decline of 16% from June 2022. An economist for the Realtors declared the housing recession over and said mortgage rates have topped out but a recovery in sales has not yet begun. He forecast 2023 existing home sales at 4.38 million, which would be 13% below the 2022 total. He also projected a 16% rebound to 5.06 million in 2024.

Friday

The Bureau of Economic Analysis said consumer spending – which accounts for about two-thirds of GDP – rose 0.5% in June, up from a 0.2% gain in May. Spending outpaced personal income, which rose 0.3% in June. Adjusting for inflation, spending rose 0.4%, led by goods consumption, especially automotive products. The personal consumption expenditures index, which the Fed follows for inflation, rose 3% from June 2022, the lowest in 27 months. A year ago, the PCE index reached a four-decade high of 7%.

Often a pre-cursor to spending, consumer sentiment rose to its highest level in October 2021. The University of Michigan said its survey-based index benefited from slowing inflation and a solid labor market. Optimism improved broadly among consumers but particularly in sentiment toward business conditions. Expectations for inflation ticked up to 3.4% from 3.3% in May.

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 14317, up 284 points or 2.0%

Standard & Poor’s 500 – 4582, up 46 points or 1.0%

Dow Jones Industrial – 35459, up 231 points or 0.7%

10-year U.S. Treasury Note – 3.97%, up 0.13 point

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Landaas & Company newsletter  July edition now available.

Advisors on This Week’s Show

Kyle Tetting

Steve Giles

Tom Pappenfus

(with Max Hoelzl and Joel Dresang, engineered by Jason Scuglik)

Week in Review (July 17-21, 2023)

Significant economic indicators & reports

Monday

No major releases

Tuesday

A key measure of consumer spending showed signs of slowing in June. Retail sales rose 0.2% from May, but only seven of 13 categories gained, with lower sales reported among gas stations, grocery stores, home-and-garden centers and others. Noting that retail sales represent about two-thirds of consumer spending, which is the prime driver of U.S. economic growth, the Commerce Department reported that sales were up 1.5% from June 2022. Adjusted for inflation, sales were unchanged from May and down nearly 2% from the year before.

The Federal Reserve said industrial production weakened in June, declining for the second month in a row. Output from manufacturing, mining and utilities was down 0.4% from June 2022. In particular, the production of long-lasting consumer goods dropped off in June but still posted a positive second quarter. Industrial capacity use declined to 78.9%, the second month in a row below its 50-year average of 79.7%. A high usage rate can signal rising inflation.

Wednesday

The U.S. housing market continued to weaken in June following a year of higher mortgage rates. The annual pace for both housing starts and building permits declined from May and lagged the June 2022 level as well. The Commerce Department report showed housing under construction remaining near an all-time peak, although the pace of construction for single-family houses kept trending lower.

Thursday

The pace of existing home sales continued to slow in June, dipping 3% from May and remaining 19% behind the rate in June 2022. The National Association of Realtors said through the first half of the year, sales were down 23% from the same time last year. An ongoing concern: Inventory. The supply of houses for sale in June remained about the same as in May but was down 14% from the year before and only about half the level the market could absorb, the trade group said. The median price of a house sold in June was $410,200, slightly below the record high set in June 2022.

The four-week moving average for initial unemployment claims fell for the third week in a row, reflecting employers’ reluctance to let workers go in an historically tight labor market. Average claims dropped 35% below the all-time average dating back to 1967, according to the Labor Department. In the latest week, total claims dropped 0.9% to 1.7 million, up 29% from the year before but down from 12.6 million at the same time in 2021.

The Conference Board said its index of leading economic indicators continued to point to a U.S. recession. The index from the business research group fell 0.7% in June, its 15th consecutive deceleration, which is the longest streak since the months leading up to the Great Recession. The group said the index fell 4.2% in the first half of 2023, compared to a decline of 3.8% in the second half of 2022. The Conference Board forecast a recession from the current quarter to the first quarter of 2024. It cited inflation, interest rates, tighter lending and reduced government spending as forces to further slow the economy.

Friday

No major announcements

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 14033, down 81 points or 0.6%

Standard & Poor’s 500 – 4536, up 31 points or 0.7%

Dow Jones Industrial – 34228, up 719 points or 2.1%

10-year U.S. Treasury Note – 3.91%, up 0.09 point

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Landaas & Company newsletter  July edition now available. Advisors on This Week’s Show Kyle Tetting Tom Pappenfus (with Max Hoelzl and Joel Dresang, engineered by Jason Scuglik) Week in Review (July 10-14, 2023) Significant economic indicators & reports Monday U.S. consumer spending showed resilience in May with credit card debt increasing for the 25th month in a […]

Landaas & Company newsletter  July edition now available.

Advisors on This Week’s Show

Art Rothschild

Adam Baley

Dave Sandstrom

(with Max Hoelzl, Joel Dresang, engineered by Jason Scuglik)

Week in Review (July 3-7, 2023)

Significant Economic Indicators & Reports

Monday

Shrinking in the manufacturing sector accelerated slightly in June, according to the Institute for Supply Management. The trade group said its manufacturing index showed contraction for the eight month in a row, sinking to its lowest level since May 2020. As the slowing economy stifled demand, more manufacturers reported layoffs, with more expected. The ISM said the manufacturing index suggested that the overall U.S. economy is receding at a 0.1% annual rate.

The Department of Commerce said construction spending rose in May for the eighth month in a row. The $1.9 trillion annual pace was up 0.9% from April and 2% above the May 2022 rate. Spending on housing, which makes up about 45% of total construction spending, rose 2% for the month but was down 11% from the year before. Spending on manufacturing construction led the gains in both periods.

Tuesday

Markets and government offices closed for Independence Day

Wednesday

Demand for commercial aircraft helped manufactured goods post a steady gain in May, as factory orders rose 0.3% from April, the fifth increase in six months. However, excluding volatile transportation orders, new contracts declined 0.5%, according to the Commerce Department. Total orders rose 1.1% from May 2022; excluding transportation, they declined 0.5%. Core capital goods orders, a proxy for business investments, was up 0.7% from April and rose 2.8% from the year before.

Thursday

The U.S. services sector continued expanding in June, according to the Institute for Supply Management. The trade group’s services index showed the sixth consecutive month of growth and the 36th gain in 37 months. Purchasing managers surveyed by the ISM said they saw stable business conditions but still had concerns about inflation and the economic outlook. The ISM said the services index suggested the overall economy is growing at a 1.4% annual pace.

U.S. employers posted 9.8 million job openings in May, down the fourth time in five months, though still ahead of levels just before the pandemic. The Bureau of Labor Statistics reported steady numbers for hiring and dislocations compared to April. More than 4 million workers voluntarily quit their jobs in May, the first gain in four months for quits, which is an indicator of worker confidence. In May, job openings outnumbered unemployed job seekers by 3.2 million, the lowest such gap since September 2021.

The four-week moving average for initial unemployment claims fell for the first time in five weeks. Considered an early indicator of joblessness, the measure was 31% below the 56-year average for claims; it was 21% above the low going into the COVID-19 pandemic. The Labor Department said 1.7 million Americans were receiving unemployment benefits in the latest week, up 0.1% from the week before and 29% above the level of 1.3 million at the same time in 2022.

Imports declined more than exports in May to narrow the U.S. trade deficit to $69 billion. The trade gap fell 7.3% from April. The Bureau of Economic Analysis said exports contracted 0.8% in May, led by lower sales of soybeans and industrial fuels, offset slightly by a rise in automotive exports. Imports declined 2.3% with lower U.S. purchases of pharmaceutical preps and cellphones, although computer imports rose. Compared to May 2022, the trade deficit narrowed by nearly 23% with exports rising almost 4% and imports falling more than 3%. Trade deficits count against the gross domestic product.

Friday

U.S. employers added 209,000 jobs in June, and the unemployment rate inched down to 3.6%, the Bureau of Labor Statistics reported. The gain in jobs was the lowest in 30 straight months of increases but continued to suggest a resilient labor market despite Federal Reserve efforts to slow the economy. The average hourly wage rose 4.4% from the year before, in line with increases in April and May, and down from nearly 6% in the spring of 2022. The 3.6% unemployment rate, based on household surveys, stayed near the lowest level in 50 years. The rate has ranged between 3.4% and 3.7% since March 2022.

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 13661, down 127 points or 0.9%

Standard & Poor’s 500 – 4399, down 51 points or 1.1%

Dow Jones Industrial – 33735, down 671 points or 2.0%

10-year U.S. Treasury Note – 4.05%, up 0.23 point

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