This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs