This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

April Jobs Report: A Prelude To Higher Rates?

One thing that has made the recent economy so challenging is its unpredictability. The latest twist was actually a positive one -- a surprisingly encouraging jobs report at a time when the economic recovery seemed to have lost momentum.

On March 3, the Bureau of Labor Statistics reported that 279,000 new jobs had been created, between the employment growth for April and upward revisions for previous months. Employment growth in April was responsible for 165,000 of those new jobs.

Upward momentum for jobs

While 165,000 is slightly below the monthly average of 169,000 for the past year, the number was encouraging because it exceeded expectations and represented a strong improvement over the original figure for March, which was just 88,000 new jobs.

That original March figure was revised upward by 50,000 in the latest report, and February's figure was revised upward by 64,000 new jobs. Add these revisions to April's job creation, and the total comes to over a quarter million new jobs in the latest report.

The stock market climbed to new highs within days of the job news, and the bond market also reacted to the renewed hopes for the economy. Bond yields jumped immediately on the employment news, and then continued to climb in the days that followed.

For bank customers, this could have a variety of long-term ramifications. It raises hopes for savings accounts because stronger economic growth should eventually mean higher interest rates. By the same token, the prospect of higher rates means that current mortgage rates may be a limited-time-only bargain for potential home buyers, as well as homeowners who want to refinance.

The economic road ahead

Is this the turning point that will see economic growth finally accelerate? Given that unpredictability has been the one true defining feature of this economic recovery, it is too early to say. However, it is not too early to prepare for what might happen if that's the case.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.72 -0.56%
FB $119.49 1.43%
GOOG $711.12 1.38%
TSLA $214.93 1.61%
YHOO $37.23 0.79%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs