Stocks edged lower for the week ending May 20 on mixed economic data. The Leading Economic Index (LEI) fell 0.3% in April, its first monthly decline since June 2010. Economists expected a flat reading for the month. However, March was revised up to 0.7% from 0.4%. Negative initial jobless claims data led the causes for the decline.
Initial jobless claims fell 29,000 to 409,000 for the week. However, the four-week moving average increased by 1,250 to 439,000. In the April 1, 2011 Pinnacle Trust Weekly Market Update, it was noted that we had seen six out of the last eight weeks below 400,000. Typically we see the economy creating more jobs when the weekly initial jobless claims number remains below 400,000. This spike in jobless claims supports the case for a choppy recovery in jobs and indicates that the rate of economic expansion remains slow. Continue reading
Stocks marched to multi-year highs on the heels of solid earnings reports and the Federal Reserve’s first-ever press conference to make its regular announcement. Despite positive earnings reports from several major technology companies, the NASDAQ lagged the DJIA and S&P 500, gaining 1.89% for the week. The DJIA increased 2.44%, while the S&P 500 climbed 1.96%. 
