Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube

  US Economy and Credit Markets Ended April 29, 2022
Posted Under: Weekly Market Commentary
Supporting Image for Blog Post

The US economy unexpectedly shrank at a 1.4% annual rate in the first quarter, following six consecutive quarters of growth. It was the first contraction since the second quarter of 2020. The US's widening trade deficit, which is expected to have topped $100 billion in March for the first time, and a slowdown of inventory buildup contributed to the decline in real GDP. The increase in the trade deficit was due to a surge in imports during the quarter. Meanwhile, the Employment Cost Index, which measures wages and benefits, increased a record 1.4% in the first quarter dating back to 2001. The sharp increase added to fears of continued high inflation and increased expectations that the Fed will tighten monetary policy more aggressively at its meetings this summer. The prospect of a more aggressive Fed contributed to the continued selloff in bonds and pushed up Treasury yields during the week. In the near term, the Fed meets on Tuesday and Wednesday this week and is widely expected to raise interest rates by 0.50%, which will be its largest rate hike since 2000. Major economic reports (related consensus forecasts, prior data) for the upcoming week include Monday: April ISM Manufacturing (57.6, 57.1), April Final S&P Global US Manufacturing PMI (59.7, 59.7); Tuesday: March Final Durable Goods Orders (0.8%, 0.8%), March Factory Orders (1.1%, -0.5%); Wednesday: May 4 FOMC Rate Decision – Upper Bound (1.00%, 0.50%), April 29 MBA Mortgage Applications (N/A, -8.3%), April ADP Employment Change (400k, 455k), March Trade Balance (-$107.0b, -$89.2b); Thursday: April 30 Initial Jobless Claims (180k, 180k); Friday: April Change in Nonfarm Payrolls (385k, 431k), April Unemployment Rate (3.5%, 3.6%).
Posted on Monday, May 2, 2022 @ 8:06 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts

S&P 500 Index Earnings & Revenue Growth Rate
How Bonds Have Fared Since 8/4/20
US Stock Markets Ended April 22, 2022
US Economy and Credit Markets Ended April 22, 2022
Passive vs. Active Fund Flows
One Measure Of Corporate Cash Holdings
US Stock Markets Ended April 14, 2022
US Economy and Credit Markets Ended April 14, 2022
Consider The Potential Opportunity Costs Before You Sell In May And Go Away!
A Snapshot Of Bond Valuations
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.