Earnings to Raise S&P 500 to Inflation-Adjusted High (Bloomberg)
According to Michael Darda, MKM Partners LLC’s chief economist and chief market strategist, corporate earnings are likely to rise high enough to send the S&P 500 Index to a “real” record high, one which accounts for inflation, surpassing the previous inflation-inclusive peak from October 2007. Darda said, “The S&P 500 should have a solid shot at reaching an all-time high in real terms; several years of earnings growth lie ahead, because of the availability of workers and the Federal Reserve’s efforts to bolster the economy through monetary policy.”
Jobless Claims Lowest in More Than Five Years (CNBC)
The number of Americans filing for unemployment benefits dropped to its lowest level in almost five and a half years last week, pointing to a stronger labor market in the wake of fiscal austerity. “We are not getting a slowing in the second quarter. The claims data provide another set of confirmation that the labor market is healing,” said Michael Strauss, chief economist at Commonfund in Wilton, Connecticut.
Dollar Hits 100-Yen Level (Reuters)
The U.S. dollar rose to its highest point against the yen in more than four years earlier today, surpassing the notable 100-yen level. “A stampede out of safety and brightening U.S. job prospects helped catapult the dollar over the key triple-digit threshold against the yen,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.