Concerns Continue over Greece and other European Markets
ISM Indices Grow; Concerns Continue over Greece and other European Markets
May 10, 2010 - Nonfarm payrolls added 290,000 jobs in April, well ahead of economists' predictions. Despite the unemployment rate increasing slightly to 9.9%, the increase in jobs was viewed as very positive. The recent increase in unemployment was largely due to people reentering the labor force after stopping their job search during the recession.
Accompanying April's job report was the release of the ISM manufacturing and service indices, both of which produced positive results. The U.S. manufacturing sector grew at its fastest pace in nearly six years, rising to 60.4 for the month of April; the service sector remained at 55.4%.
Concerns over the debt crisis in Greece, and the potential for similar issues in Spain and Portugal, put much of the global financial markets on edge. This, combined with the Dow's near 1,000 point drop, helped drive mortgage rates downward. Many consumers are taking advantage of the low rates to lock in refinances and purchase transactions.
This week has many important economic releases, including Retail Sales and Industrial Production. Eyes, however, will be primarily focused on events in European as well as the direction of the stock market.