U.S. Factory Orders

Factory orders in U.S. rose for the third consecutive month in April, with a 0.7 percent increase. Durable goods orders rose by 0.6 percent, while nondurable goods orders rose by 0.8 percent. Orders for consumer goods increased by 1.2 percent.

Inflation and Federal Reserve Rate Cuts

Inflation in the U.S. eased slightly in April, leading Wall Street to anticipate a rate cut by the Federal Reserve. However, the trend in inflation indicates that the Fed may not necessarily move to cut rates soon.

Consumer Prices

Consumer prices in April were up 3.4% from a year ago, a smaller annual increase than the month before.

Job Growth Slowed in April

Job growth slowed more than expected in April, leading to market speculation of rate cuts. Despite the slowdown, the number of jobs added was not weak. The unemployment rate ticked up slightly, but the rise was minimal. The private sector added a healthy number of jobs, while government hiring decreased. Health care and social assistance sectors saw positive growth. The market reaction to the report may be overdone, as it is not likely to push the Fed into immediate rate cuts.