1. New jobs stand ground in March
As long as the economy continues to generate new jobs, members of the Federal Reserve can pooh-pooh the staggering residential real estate market and less-than-stellar car sales. A fresh test occurs Friday, with the employment report for March. Chicago economist Robert Dederick expects it to show the economy added 130,000 payroll positions last month, with joblessness holding steady at 4.5 percent. “Workers are artfully dodging the gales that are emanating from housing and manufacturing,” said Dederick, of RGD Economics. “But there is unease about the months ahead. Companies are buying less equipment, which may soon mean less hiring.”
2. Manufacturing muddle
The manufacturing sector got an unexpected boost Friday, when a monthly survey from the Chicago Purchasing Managers jumped to 61.7 from 47.9 a month earlier, It was the highest reading since April 2005 and far above consensus. The national equivalent, from the Institute for Supply Management, is due out Monday. Economists are looking for a weak number, on the order of 51.5, down from 52.3.
3. Gas prices point to $3
With gasoline prices locally topping $2.79 a gallon, expectations are growing that motorists soon will face a number on the pump above $3. On the bright side, g asoline futures slipped from a seven-month high last week. There were 210.2 million barrels in storage, a tiny 0.1 percent above the five-year average. Meanwhile, gasoline imports are surging, and refineries are ramping up, in response to the spike in prices.
4. Auto sales show life
The nation’s automakers are expected to kick out of the slow lane Tuesday, when they report slightly improved car and light truck sales for last month. But don’t look for much in the way of peppy performance from Ford Motor Co. The nation’s second-largest automaker said its domestic sales fell at least 10 percent in March, as it sold fewer F-Series pickup trucks. The F-Series is Ford’s profit mainstay. Also on tap: Freshly minted iron from the carmakers at this week’s New York Auto Show.
5. Profit reports on deck
Now that April Fool’s Day is gone, the stock market starts the second quarter with a welter of profit reports on the horizon. Economists at Global Insight say the bright spots include “capital goods industries that continue to benefit from strong overseas orders, and computer equipment, a stand-out.” Additionally, energy industry suppliers are going flat out. Meanwhile, prepare for a short week, as markets close for Good Friday.
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