The private sector added 213,000 jobs in April, delivering a hefty gain after a disturbingly soft rise in March, the Labor Department reports. Indeed, the government’s revised data for March shows that US companies increased payrolls by only 94,000, substantially less than the initial estimate of a 129,000 rise. The main takeaway, however, is obvious: job creation picked up dramatically last month. The news suggests that the sharp slowdown in March was an anomaly. As for deciding whether the economy is again headed for a period of modest growth or something stronger, today’s data still leaves room for debate.
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Every time someone comes up with a “new and improved” way to invest or predict which active managers will shine, it seems that subsequent research finds that it’s really just about focusing on different betas. The latest example is a new study (“Deactivating Active Share”) from AQR, a quantitative money manager, which documents that it’s (still) all about beta when it comes to looking for clues about which active managers are more likely to deliver statistically significant alpha.
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● UK election: David Cameron’s Conservative Party predicted to win majority | CNN
● US jobless claims hover near 15-year low, boost growth outlook | Reuters
● Consumer Comfort in U.S. Declines to Lowest Level in 8 Weeks | Bloomberg
● Consumer credit jumps $20.5 billion in March | MarketWatch
● German Industrial Production Falls as Economy Risks Grow | Bloomberg
● German Exports Rise More Than Forecast | RTT
● China April Trade Disappoints; Govt Warns of Unstable Exports | MNI
● Italy Industrial Production Climbs More Than Expected | RTT
● MNI Survey: Japan Q1 GDP +1.6% Annualized, 2nd Straight Rise | MNI