Dow Hits 15,000; Housing Rebound Rises alongside Jobs Gains; Dollar Rises against Yen
Dow Hits 15,000 (Bloomberg)
For the first time ever, the Dow Jones Industrial Average reached 15,000, setting a new record high in the process. An expectations-beating April employment rise and a sudden decline in the jobless rate were major contributors to the Dow’s growth today. “This is an outstanding jobs report,” Darrell Cronk, the New York-based regional chief investment officer at Wells Fargo Private Bank, said. “The data is strong enough to confirm that the expansion is intact, and the bones of this recovery are where they need to be.”
Housing Rebound Rises alongside Jobs Gains (CNBC)
The housing rebound has led homeowners to feel more confident in spending money, which stimulates the economy and leads to new jobs. Today’s jobs data should demonstrate a similar reciprocal relationship. “People are much more willing to part with their paychecks and spend when they know they are restoring the wealth in their house,” said Diane Swonk of Mesirow Financial.
Dollar Rises against Yen (Reuters)
The good jobs data also had an effect on the value of the U.S. dollar, as the American currency rose by more than one percent against the Japanese yen. “No spring swoon,” said Alan Ruskin, head of G10 FX strategy at Deutsche Bank in New York. “The data in one swoop puts a reduction of Fed QE purchases firmly back on the table for the second half of this year… The data is very solidly U.S. dollar-positive.”