General Motors filed for bankruptcy this morning and is the third-largest in US history and the largest-ever US manufacturing failure, according to Reuters. Details from Bloomberg...
Personal income unexpectedly rose 0.5% in April, versus the estimate of -0.2%, and March was revised from -0.3% to -0.2%. Personal spending declined 0.1% in April, slightly less than the expectation of -0.2%, while March's 0.2% decline was revised to a 0.3% drop.
Also, the PCE Price Index, which is released with the income and spending data, rose 0.4% year-over-year in April, in line with the consensus forecast, and March's gain was unrevised at 0.6%. The core PCE Price Index, which excludes food and energy, increased 0.3%, above expectations of 0.2%.
The ISM Manufacturing Index improved to 42.8 from 40.1 in April, and was higher than the 42.3 forecast by economists. New orders continued to improve, to 51.1 in May from 47.2 in April, and is now at a level indicating growth, after 17 months of contraction. Employment remained stagnant, at 34.3, versus 34.4 in April and prices paid were 43.5 versus 32.0, indicating that prices continue to decline, but at a less rapid rate. Details from Bloomberg...
Construction spending unexpectedly rose for the second-consecutive month and posted the biggest gain since last August, rising by 0.8% in April, and March's figure was revised slightly higher from 0.3% to 0.4%. Economists had been expecting a decline of 1.5% in April.
The Dow Jones Industrial Average rose 221 points (2.6%) to close at 8,721, the S&P 500 Index advanced 24 points (2.6%) to 943, and the Nasdaq Composite gained 54 points (3.1%) to 1,829. Crude oil rose $2.27 to $68.58 per barrel, and gold declined $4.25 to $974.90 per ounce.
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