The US Department of Commerce released its most closely watched of all inflation gauges, the core Personal Consumption Expenditure Price Index (PCE).
- Income rose 0.3 percent in April but the wages & salaries component shows a 0.4 percent gain.
- Spending jumped 0.6 percent in the month led, however, by a 0.9 percent gain for nondurables which reflects April’s rise in gas prices.
U.S. Department of Labor, Initial Jobless Claims report showed claims remain steady at are consistent with a strong demand for labor.
- Initial claims fell 13,000 in the week of May 26th to 221,000 with the 4-week average up slightly to 222,250.
- Continuing claims in lagging data for the May 19 week fell 16,000 to 1.726 million with this 4-week average also down slightly, to 1.744 million.
- The unemployment rate for insured workers remains at 1.2 percent.
The National Association of Realtors posted pending-home-sales data for April showing a decline of 1.3 percent to 106.4 in April from an upwardly revised 107.8 in March.
The Chicago Purchasing Managers Index was also released this morning and showed a 5.1 points increase.
- New orders, which had been slowing, are re-accelerating with backlog orders likewise rebounding.
- Production picked up in the month as did employment which, however, continues to be held back by lack of available labor.
Earning reports today include: Dollar Tree, American Eagle Outfitters, Costco Wholesale, Ciena, Express, VMware, Workday and Ulta Beauty.