April Jobs Report Shows Slower Pace of Growth
WEEKLY UPDATE - MAY 9, 2016
In This Issue
Markets slumped for the third week as global concerns pressured investors again, and domestic data painted a modest picture. For the week, the S&P 500 lost 0.40%, the Dow fell 0.19%, the NASDAQ dropped 0.82%, and the MSCI EAFE fell 3.19%.[1]

April's job report showed investors that the labor market continues to improve, adding 160,000 jobs last month. However, the gains were far below the consensus estimate of 200,000 new jobs. Though the unemployment rate remained unchanged at 5.0%, one estimate of the underemployment rate-measuring discouraged workers and part-timers who want full-time work-fell to 9.7% from 9.8% in March. That's good news, because it means that workers who have struggled in the recovery may finally be catching up.[2]

However, it's not all good news. A separate private industry report found that job cuts surged 35.0% between March and April as firms let go of workers. Over 250,000 pink slips were handed out between January and April, the largest number since early 2009. Though the beleaguered energy sector is driving layoffs, shifting consumer preferences are also causing retail and computer companies to cut jobs.[3]

Further analysis of the job gains also showed that much of the fastest growth in hiring is coming from low-paying industries like retail and hospitality. The lack of high-paying job opportunities is reflected in wage growth numbers. Since 2005, the median weekly wage across all jobs has increased by just $176. Wage gains are even slower in low-paying industries and for workers with less education.[4]

Economists suspect that slow wage growth is contributing to sluggish consumer spending and slower economic growth. When foreign demand drops, economic growth depends more on domestic spending. However, there are signs that growth may be picking up; in April, wages grew 2.5% from the previous year.[5]

Will wages pick up enough this year to drive more purchases of big-ticket items? We'll have to see.

Looking ahead, it's unclear whether domestic economic data will drive away global woes. Realistically, we're likely to see both soft and strong data in the weeks to come that will hopefully push stocks higher again once earnings season is over.


ECONOMIC CALENDAR: 
Tuesday: JOLTS
Wednesday: EIA Petroleum Status Report, Treasury Budget
Thursday: Jobless Claims, Import and Export Prices
Friday: Retail Sales, PPI-FD, Business Inventories, Consumer Sentiment




Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance, S&P Dow Jones Indices, and Treasury.gov. International performance is represented by the MSCI EAFE Index. Corporate bond performance is represented by the SPUSCIG. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.

HEADLINES:

Construction spending grows .03% in March. Spending on commercial and residential construction reached its highest level in eight years after a strong gain in February.[6]

Motor vehicle sales close to record month. After a slow start to the year, April light vehicle sales are expected to grow 5.0%, setting a new monthly high and putting U.S. automakers on track to beat last year's sales record.[7]

China's trade slumps. Imports and exports in the world's second-largest economy contracted sharply in April in the latest sign that weak demand is prolonging China's slowdown.[8]

March factory orders increase 1.1%. Orders to U.S. manufacturers increased modestly after dropping in February. Economists hope that the dollar's drop will help the manufacturing sector bounce back.[9]




"I'm wholehearted about whatever I do." 

 - Melinda Gates

Grilled Brussels Sprouts Salad
Convert sprout haters with this crunchy, tangy salad.

Serves 4

Ingredients:

1 pound Brussels sprouts, rinsed and quartered

8 radishes, bottoms removed and thinly sliced

2 small tart apples, thinly sliced

� cup olive oil

Kosher salt and black pepper

Juice from one lemon

2 ounces shaved Parmesan or other salty cheese

 

Chef's Tip: Don't want to fire up the grill? You can cook the vegetables under the broiler, too. Just swap out your grilling pan for a rimmed baking sheet.


Directions:
  1. Heat your grill to high (or turn your broiler to high).
  2. Toss the sprouts, apples, and radishes with the olive oil and spread them on a non-stick grilling pan or skillet with holes. Sprinkle them with salt and pepper.
  3. Set the pan on the grill and stir the veggies occasionally to let them char. Once the apples and sprouts start to become tender-about 6-8 minutes later-remove them.
  4. Toss the veggies with the lemon juice and Parmesan cheese. Serve warm.

Recipe adapted from Sarah Copeland | RealSimple.com[10]

 

 


 

 

What Should You Know About the Taxpayer Advocate Service?

The Taxpayer Advocate Service is an independent group within the IRS that works to protect taxpayers under the Taxpayer Bill of Rights. They also help taxpayers resolve issues and act as the taxpayer's voice within the IRS. Here's what you should know:
  • Advocates can help you resolve lingering issues with the IRS that you cannot resolve alone.
  • They work with individuals, businesses, and tax-exempt organizations at no charge.
  • You may be eligible for help if your IRS problem is causing financial stress or if you believe an IRS procedure is flawed.
  • You can find a Taxpayer Advocate through your local directory and at http://www.taxpayeradvocate.irs.gov. You can also call their hotline at     1-877-777-4778.
Tip courtesy of IRS.gov[11]
Don't Stress. Just Play Golf!

Think about the last time you played a round; did you enjoy yourself or did you spend most of your time thinking about swing mechanics and dialing in your game? Did you get frustrated by your playing?

Though it's natural to want to get better as a golfer, don't let your pursuit of skill ruin your playing. When you fuss with your swing during a round, you're probably not getting any better and you're losing sight of your objective: a great round of golf. Work on separating your practice time from your playing time so that you can focus on getting the most out of your drills while still enjoying time on the course.

Tip courtesy of Lana Ortega, LPGA | Golf Tips Mag[12]
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The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies.
 
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia. 
 
The S&P U.S. Investment Grade Corporate Bond Index contains U.S.- and foreign-issued investment-grade corporate bonds denominated in U.S. dollars

The SPUSCIG launched on April 09, 2013. All information for an index prior to its Launch Date is back-tested, based on the methodology that was in effect on the Launch Date. Back-tested performance, which is hypothetical and not actual performance, is subject to inherent limitations because it reflects application of an Index methodology and selection of index constituents in hindsight. No theoretical approach can take into account all of the factors in the markets in general and the impact of decisions that might have been made during the actual operation of an index. Actual returns may differ from, and be lower than, back-tested returns.
 
The S&P/Case-Shiller Home Price Indices are the leading measures of U.S. residential real estate prices, tracking changes in the value of residential real estate. The index is made up of measures of real estate prices in 20 cities and weighted to produce the index. 
 
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http://finance.yahoo.com/q/hp?a=04&b=2&c=2016&d=04&e=6&f=2016&g=d&s=%5EIXIC%2C+&ql=1
  
https://www.msci.com/end-of-day-data-search
  
  
http://www.forbes.com/sites/samanthasharf/2016/05/06/jobs-report-u-s-adds-160000-jobs-in-april-unemployment-rate-steady-at-5/#5d7aefa22c9a
  

  
  
  





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