Stock markets had a strong week - The Dow Jones Industrial Average closed the week at 34,777.76, up 2.7% from 33,874.85 last week. It is up 13.5% year-to-date. The S&P 500 closed the week at 4,232.60.17, up 1.2% from 4,1801.17 last week. It is up 12.6% year-to-date. The NASDAQ closed the week at 13,752.24, down up 1.5% from 13,962.68 last week. It is up 6.8% year-to-date.
U.S. Treasury bond yields - The 10-year treasury bond closed the week yielding 1.60%, down from 1.65% last week. The 30-year treasury bond yield ended the week at 2.28%, down slightly from 2.30% last week. We watch bond yields because mortgage rates often follow treasury bond yields.
Mortgage rates - The May 6, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.96%, almost unchanged from 2.98% last week. The 15-year fixed was 2.30%, almost unchanged from 2.31% last week. The 5-year ARM was 2.7%, up from 2.64% last week.
U.S. employers added 266,000 jobs in April - The Department of Labor and Statics reported that 266,000 new jobs were added in April. That shocked experts who had expected one million new jobs added as the economy has substantially re-opened from COVID -19 closures. There were 916,000 new jobs added in March (it was later revised down to 770,000). Analysts expected at least that amount. Normally 266,000 new jobs would be a healthy figure, but with the re-openings taking place it was a very disappointing result leading investors to wonder if the expansion is stalling. The unemployment rate was 6.1% in April, almost unchanged from 6% in March.
Have a great weekend and happy Mother’s Day to all!