U.S. stocks ended lower yesterday for the second straight day, as investors realized that the Federal Reserve wasn’t going to lower interest rates this year, and that the next interest rate move will most likely be higher.
The US economy added 263,000 jobs and the unemployment rate fell to 3.6% in April according to the Department of Labor. The increase in new jobs easily beat expectations and the unemployment rate is at a 50-year low. Average wages for Americans rose to $27.77/hour.
The productivity of American workers soared in the first quarter and pushed the increase over the past year to the highest level since 2010, a potentially great sign for the U.S. economy. The productivity of American workers increased at a 3.6% annual pace from January through March.
In a sign that the IPO market here in the US is getting frothy, a company called Beyond Meat went public yesterday and traded 165% above its IPO price. The company now trades at more than 40 times revenue. Traditional food companies trade at less than 2 times revenue. Investors beware.