Morning Report: Job openings fall

Posted on May 2, 2023 by Brent Nyitray

Vital Statistics:

Stocks are lower as we begin the FOMC meeting. Bonds and MBS are down.

Construction spending rose 0.3% MOM in February, according to Census. This was up 3.8% compared to a year ago. Residential construction spending was down 0.2% MOM and 10% on a YOY basis. It is interesting how much single family and multi-family construction spending has diverged.

Lending Tree is down some 22% this morning after reporting a disappointing quarter. Mortgage revenues were down big, but home equity was a bright spot. Given the home affordability problems as well as the lock-in effect (i.e. hate the house, love the mortgage) we are probably going to see more emphasis on reno products, and HELOCs are another good way to do some business while we wait for rates to fall.

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The number of job openings decreased to 9.6 million, according to the latest JOLTS jobs report. This was down 384,000 from February and 1.6 million from December 31. The quits rate, which tends to predict wage inflation, fell to 2.5%. The quits rate was 2.9% a year ago.

The job openings rates were highest in leisure / hospitality, especially arts and entertainment. I guess the world needs more poets.

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