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Weekly Market Snapshot: April 2, 2021
Market related news for the week ending April 2, 2021
- Stock indexes were down Monday after it was revealed Archegos Capital Management was forced to liquidate large positions in U.S. media stocks and Chinese internet companies. Credit Suisse and Nomura warned of a “significant” impact on first quarter results with the banks down 15% and 16% respectively.
- Tuesday the yield on the benchmark 10-year Treasury jumped to 1.749%, the highest in 14 months.
- Wednesday President Biden unveiled a $2.25 trillion infrastructure plan. The four-part, eight-year plan breaks down into $620 billion for transportation and $650 billion for measures including clean water and high-speed broadband. The bill also earmarks $580 billion for manufacturing, including $180 billion in the biggest non-defense R&D program on record. Finally, $400 billion will be directed toward care for the elderly and disabled. As expected, the emphasis was on sustainability and green projects, with money for modernizing the electric grid, as well as building, preserving and retrofitting homes and commercial buildings. The plan is to pay for the program with corporate income tax rising to 28% from 21% and a global minimum tax of 21%.
- Friday March Non-farm Payrolls increased 916,000 (vs. 660,000 expectations) with significant upward revisions to prior months’ job gains. The payroll figures showed broad-based gains across industries, led by a 280,000 surge in leisure and hospitality. Construction payrolls jumped 110,000 after dipping in February amid severe winter weather. Education employment also climbed as more schools reopened. Additionally, the unemployment rate fell to 6% (vs. 6.2% prior) and the participation rate ticked up as well.
Economic news for the week ending April 2, 2021
- Tuesday: S&P Case Shiller 20-City House Price Index for January was up 1.2% or 11.1% year-onyear. The gain was higher than expected and the largest gain since 2006.
- Tuesday: CB Consumer Confidence for March was 109.7, much higher than expected and up from February’s 90.4.
- Wednesday: ADP Non-Farm Employment for March was 517,000.
- Wednesday: Chicago PMI for March came in at 66.3, higher than expected and up from February’s 59.5.
- Wednesday: Pending Home Sales for February fell 10.6%, far great than expected.
- Thursday: Manufacturing PMI for March was 59.1.
- Thursday: ISM Manufacturing PMI for March was 64.7.
- Thursday: Initial Jobless Claims were 719,000, higher than expected and up from the prior 658,000. Continuing Claims were 3,794,000.
- Friday: Non-Farm Payrolls for March were 916,000 far higher than expected.
Economic events for the week ending April 9, 2021
(all times listed are Eastern)
- Monday: Markit Composite PMI for March at 9.45am.
- Monday: Services PMI for March at 9.45am.
- Monday: Factory Orders for February at 10.00am.
- Monday: ISM Non-Manufacturing PMI for March at 10.00am.
- Tuesday: JOLTs Job Openings for February at 10.00am.
- Thursday: Initial Jobless Claims at 8.30am.
- Friday: PPI for March at 8.30am.
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