U.S. futures have tacked on gains following the release of the April Employment Situation Report. The S&P 500 futures trade 12 points, or 0.4%, above fair value after a two-day pullback.
Once again, the employment report pointed to strong headline growth and subdued inflationary pressure stemming from rising wages. Nonfarm payrolls increased by 263,000 while average hourly earnings were up just 0.2%, leaving them up 3.2% yr/yr, unchanged from what was seen in the March report. The April report should support the Fed’s case for staying on its current policy path.
Strikingly, the unemployment rate fell to 3.6% -- its lowest rate since 1969.
U.S. Treasuries have seen some buying interest following the report, pulling yields lower from prior levels. The 2-yr yield is down one basis point to 2.33%, and the 10-yr yield is flat at 2.55%. The U.S. Dollar Index is up 0.1% to 97.91.
Separately, the Advance report for International Trade in Goods for March showed a deficit of $71.5 billion. The Advance report for Wholesale Inventories for March showed a decrease of 0.3%, and the Advance report for Retail Inventories for March showed no change in retail inventories.
As a reminder, the ISM Non-Manufacturing Index for April (Briefing.com consensus 57.4) will be released at 10:00 a.m. ET.