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Chicago PMI drop led by employment

  • The Q1 average for the Chicago PMI was 58.4, off from 63.3 in Q4.
  • The March decline to 55.9 (from 59.8) is highlighted by a sharp decline in the Employment sub-index which fell into contraction territory. New Orders fell for the 2nd straight month, but remained above 50. A bright spot was production, which rose to its highest level since November.
  • MNI Indicators chief economist Philip Uglow: "It’s too early to tell, though, if this is the start of a sustained slowdown or just a blip."
  • Full report
    The weak print combined with dovish comments from Janet Yellen, briefly had bond prices popping, but they've settled down. TLT -0.6%. The 10-year Treasury yield is up four basis points to 2.76%.
  • ETFs: TBT, TLT, TMV, TBF, EDV, TTT, TMF, SBND, ZROZ, TLH, DLBS, VGLT, UBT, TLO, LBND, TYBS, TENZ, DLBL
Comments (3)
  • june1234
    , contributor
    Comments (2492) | Send Message
     
    If markets cared about employment they would not be where they are today.
    31 Mar, 10:25 AM Reply Like
  • mobyss
    , contributor
    Comments (1828) | Send Message
     
    They do care about unemployment - the worse it is the better it is for the markets.

     

    Yellen just put the hammer down - all because of what she perceives as "solveable unemployment". As long as "too many" people are out of work the Fed will ZIRP, and that could be for a long, long time.
    31 Mar, 12:39 PM Reply Like
  • permanent
    , contributor
    Comments (114) | Send Message
     
    Why unexpected? Indeed market donĀ“t care about data they only care about Yellens words and hope for more dope from the FED.
    31 Mar, 11:02 AM Reply Like
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