Salient to Investors:
The 4-week average of applications for unemployment insurance over the past month fell to the lowest level since November 2007, showing employers have enough confidence to hold onto workers.
Consumer sentiment last week held around the highest level in 5 years.
Guy Berger at RBS Securities said there is only so many layoffs companies can do before they have to start thinking about adding jobs.
The Bloomberg consumer comfort index shows that gains in sentiment over the past month have been driven by wealthier Americans who benefit the most from higher stock and home prices.
Joseph Brusuelas at Bloomberg said upper-income earners feel more comfortable about their finances, while middle and lower wage earners are facing difficulty adjusting to smaller paychecks, so consumer spending will grow at a modest pace.
Read the full article at http://www.bloomberg.com/news/2013-05-09/jobless-claims-in-u-s-unexpectedly-decrease-to-five-year-low.html
Click here to receive free and immediate email alerts of the latest forecasts.