A surprise to the upside for the core CPI could have caused a new downside for the markets but the early trade shrugged off the news.
- Both the headline and the core missed expectations, rising 0.2 percent for the former and only 0.1 percent for the latter.
- Year-on-year rates also missed expectations, at 2.5 percent overall and a 1 tenth gain and no gain at all for the core at 2.1 percent.
Initial jobless claims beat expectations, holding at 211,000 in the May 5 week and pulling the 4-week average down 5,500 to a new 49-year low at 216,000.
- Continuing claims, which follow by a week, are mixed with the April 28 week up 30,000 to 1.790 million but the 4-week average down 22,000 to 1.813 million.
- The unemployment rate for insured workers is up 1 tenth to what is still a very low 1.3 percent.
Overnight, the MSCI Asia Pacific Index added 0.4 percent while Japan’s Topix index rose 0.3 percent.
- In Europe, the Stoxx 600 Index was 0.2 percent lower in a quiet trading session due to holidays in some parts of the region
- S&P futures pointed to a slightly higher open, the 10-year Treasury yield was at 2.975 percent and gold was higher.