---
title: "Monday Update: Hiring Remained Strong in April"
description: In his Monday Update, Commonwealth’s Sam Millette focuses on the April inflation reports, consumer sentiment, and the overall economic recovery.
image: https://blog.commonwealth.com/hubfs/Rebrand-Blog-Images/IMO-images/Monday-Update/monday-b.jpg
---

[![The Independent Market Observer](https://blog.commonwealth.com/hubfs/IMO-Title-1.png "The Independent Market Observer")](https://blog.commonwealth.com/independent-market-observer)

[![Commonwealth Financial Network](https://blog.commonwealth.com/hubfs/lockup_citron-1.png "Commonwealth Financial Network")](https://www.commonwealth.com/)

- [Home](https://blog.commonwealth.com/independent-market-observer)
- [About](https://learn.commonwealth.com/about/)

### ![print this page](https://blog.commonwealth.com/hs-fs/file-1376458285-gif/images/print.gif)Print

# [Monday Update: Hiring Remained Strong in April](https://blog.commonwealth.com/independent-market-observer/monday-update-hiring-remained-strong-in-april)

Posted by [Sam Millette](https://blog.commonwealth.com/independent-market-observer/author/sam-millette) 

This entry was posted on  May 9, 2022, 11:53:26 AM

 and tagged [In the News](https://blog.commonwealth.com/independent-market-observer/topic/in-the-news) 

[Leave a comment](https://blog.commonwealth.com/independent-market-observer/monday-update-hiring-remained-strong-in-april#comments-listing)

![Monday Update](https://blog.commonwealth.com/hs-fs/hubfs/Rebrand-Blog-Images/IMO-images/Monday-Update/monday-b.jpg?width=300&name=monday-b.jpg)There were several important economic data releases last week, with reports covering business confidence, international trade, the results from the Fed’s May meeting, and the April employment report. The jobs report was a highlight, as it showed continued strong hiring in April despite the headwinds created by rising labor costs and tighter monetary policy. This will be another busy week of updates, with a focus on the April inflation reports.

##### Last Week’s News

On Monday, the ISM Manufacturing survey for April was released. This measure of manufacturer confidence surprisingly dropped from 57.1 in March to 55.4 in April against calls for an increase to 57.6. This is a diffusion index where values above 50 indicate growth, so this report showed continued expansion for the manufacturing industry despite the miss against expectations. The drop in the index was largely due to softer demand for manufactured goods. The report also showed that the measure of new orders fell to its lowest level since May 2020, with hiring also showing signs of weakness. All in all, this report indicated that the recovery for the manufacturing industry slowed during the month; however, slower growth is still growth, and the industry is expected to continue to improve in the months ahead.

On Wednesday, the March international trade balance report was released. It showed that the trade deficit increased more than expected. The monthly trade deficit widened from an upwardly revised $89.8 billion in February to $109.8 billion in March against calls for an increase to $107.1 billion. The trade deficit has increased in each of the past five months, and the March result marked a new record monthly deficit. The larger-than-expected increase in March was due to a 10.3 percent increase in imports during the month, which more than offset the 5.6 percent rise in exports. The large monthly trade deficits throughout the first quarter were driven by record imports, which indicated high levels of domestic demand for goods and services. That said, the slower export growth over the quarter, due to faltering international demand, caused net trade to serve as a drag on economic growth. Economists largely expect to see the trade deficit start to normalize in the months ahead, which, in turn, could help support overall economic growth.

Wednesday also saw the release of the ISM Services index for April. Service sector confidence declined during the month, with the index falling from 58.3 in March to 57.1 in April against calls for a modest increase to 58.5. This is another diffusion index where values above 50 indicate growth, so this result still signals continued expansion for the service sector. The decline in April was largely due to a slowdown in service sector hiring, which, in turn, was caused by the current labor shortage and rising employment costs. While the headline index dropped, there were positive signs in the underlying data, including an increase in business activity. Looking ahead, economists largely expect to see service sector confidence improve heading into the summer months, as consumers continue to pivot from spending on goods to spending on services.

The third major data release on Wednesday was the FOMC rate decision from the Fed’s May meeting. The Fed raised the upper limit for the federal funds rate from 0.50 percent to 1 percent, as expected by markets and economists. This 50 bp interest rate hike is part of the Fed’s larger plan to tighten monetary policy throughout the year to combat inflation. Fed Chair Jerome Powell indicated at his post-meeting press conference that the central bank is planning on further rate hikes at future meetings. Markets are largely expecting another 50 bp increase when the Fed meets again in June. Aside from the rate hike announcement, the Fed also stated its plans to begin trimming its balance sheet in June. The balance sheet reductions will start at just under $50 billion per month and will increase to $95 billion per month later in the year, although the pace of balance sheet reductions will depend on market and economic conditions.

We finished the week with Friday’s release of the April employment report. It showed that 428,000 jobs were added during the month. This was better than the 380,000 jobs economists expected and in line with the downwardly revised 428,000 jobs that were added in May. This marks 16 consecutive months of job growth, highlighting the impressive labor market recovery we’ve seen since the end of initial lockdowns in spring 2020. The gains were widespread, as most industries saw increased hiring throughout the month. That said, leisure and hospitality saw notable gains, with manufacturing not far behind. The underlying data was also solid, as the unemployment rate remained unchanged at 3.6 percent. This ties the pandemic-era low that was set in March and is close to the pre-pandemic low of 3.5 percent from February 2020. Overall, this was a strong report that showed the economic recovery continued at a healthy pace in April despite headwinds created by rising costs and tighter monetary policy.

##### What to Look Forward To

On Wednesday, the April Consumer Price Index report is set to be released. Consumer inflation is expected to slow down during the month, with economists forecasting a 0.2 percent rise in prices in April following a 1.2 percent increase in March. On a year-over-year basis, headline consumer prices are expected to increase 8.1 percent in April, down from 8.5 percent in March. Part of the anticipated slowdown in headline consumer inflation in April is due to relatively steady gas prices, as the surge in gas prices in March was a major driver of inflation. Core consumer prices, which strip out the impact of volatile food and energy prices, are set to increase 0.4 percent during the month and 6.1 percent on a year-over-year basis. Consumer prices have experienced significant inflationary pressure throughout the past year driven by high levels of consumer demand, shipping bottlenecks, and rising material and labor costs.

On Thursday, the Producer Price Index report will be released. As was the case with consumer inflation, producer inflation is expected to moderate in April. Headline producer prices are expected to rise 0.5 percent during the month, down from 1.4 percent in March. On a year-over-year basis, producer prices are expected to increase 10.6 percent in April, down from 11.2 percent in March. Core producer prices, which strip out the impact of volatile food and energy prices, are also expected to show slower growth in April. Core producer prices are expected to increase 0.7 percent during the month and 8.9 percent on a year-over-year basis, down from the 1 percent monthly and 9.2 percent year-over-year increases we saw in March. In the past year, producer prices have experienced similar upward pressure as consumer prices due to high levels of demand and tangled supply chains. This year, the Fed is expected to continue focusing its efforts on combating inflation through the use of tighter monetary policy. So, both the consumer and producer inflation reports will be closely watched by investors and economists in the months ahead.

We’ll finish the week with Friday’s release of the preliminary estimate of the University of Michigan consumer sentiment survey for May. Economists expect to see the index decline modestly during the month, with forecasts calling for a drop from 65.2 in April to 63.6 in May. Consumer sentiment has been challenged during the year by the impact of the Omicron variant, rising prices, and market volatility. Additionally, the war in Ukraine and the surge in Covid-19 cases in China have also increased geopolitical risk over the past two months. While there have been several challenges for consumer confidence throughout the year, consumer spending growth has remained relatively strong; so the declines in confidence have yet to negatively impact the current economic recovery. Looking forward, we’ll likely need to see progress in getting inflation under control before we see sentiment recover to the recent highs we saw early last year.

That’s it for this week—thanks for reading!

- [Tweet](https://twitter.com/share)

### Subscribe via Email

![TMO\_IMO\_615x408\_sidebar](https://blog.commonwealth.com/hs-fs/hubfs/TMO_IMO_615x408_sidebar.png?width=1033&height=686&name=TMO_IMO_615x408_sidebar.png "TMO_IMO_615x408_sidebar")

[Episode 20](https://vimeo.com/1201911815/0f4f028be9?share=copy&fl=sv&fe=ci)  
June 17, 2026

[Episode 19](https://vimeo.com/1191658257/1b43ce84dd?share=copy&fl=sv&fe=ci)  
May 13, 2026

[Episode 18](https://vimeo.com/1183174918/e227cf7d80?share=copy&fl=sv&fe=ci)  
April 15, 2026

[Episode 17](https://vimeo.com/1174554734/636f0f7aba?share=copy&fl=sv&fe=ci)  
March 18, 2026

[Episode 16](https://vimeo.com/1163757312/bc2f802d74?share=copy&fl=sv&fe=ci)  
February 11, 2026

<https://news.yahoo.com/stocks-halt-rout-dollar-down-200241022.html>[More](https://learn.commonwealth.com/monthly-media-placements)

[![Insights\_CTA\_IMO\_233x400-1](https://no-cache.hubspot.com/cta/default/295024/interactive-187935228457.png)](https://blog.commonwealth.com/hs/cta/wi/redirect?encryptedPayload=AVxigLImUGVfNI4B3017KbrpEu5%2FQXxxhKQ0LNA6q%2Fb0DLjGJNLD6bq9AXUTfLfuluP436Rfh8XsACYKBJWRagc4iq2y5ftnD%2FZ6lD8K3ajq1b8pMzwK3C5WHbStZbsaZuj%2BOxLbdWtT3i0mfhyYjyM8oQdROD9PmkNeaJsxL3v9wojqiwVD03aeJdull9bDCKCocUXiRJrSSj%2FnA8U%3D&webInteractiveContentId=187935228457&portalId=295024)

### Hot Topics

Select Category Ask Brad Commentary Economic Risk Factor Updates Economics Lessons Market Thoughts Videos In the News Investing Market Updates On My Bookshelf Politics and the Economy

[![New Call-to-action](https://no-cache.hubspot.com/cta/default/295024/5f46d9ce-4d40-495c-a126-d4502b647bbf.png)](https://cta-redirect.hubspot.com/cta/redirect/295024/5f46d9ce-4d40-495c-a126-d4502b647bbf)

### Archives

- [September 2026 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2026/09)
- [August 2026 (2)](https://blog.commonwealth.com/independent-market-observer/archive/2026/08)
- [July 2026 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2026/07)
- [June 2026 (2)](https://blog.commonwealth.com/independent-market-observer/archive/2026/06)
- [May 2026 (2)](https://blog.commonwealth.com/independent-market-observer/archive/2026/05)
- [April 2026 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2026/04)
- [March 2026 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2026/03)
- [February 2026 (4)](https://blog.commonwealth.com/independent-market-observer/archive/2026/02)
- [January 2026 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2026/01)
- [December 2025 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2025/12)
- [November 2025 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2025/11)
- [October 2025 (4)](https://blog.commonwealth.com/independent-market-observer/archive/2025/10)
- [September 2025 (4)](https://blog.commonwealth.com/independent-market-observer/archive/2025/09)
- [August 2025 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2025/08)
- [July 2025 (4)](https://blog.commonwealth.com/independent-market-observer/archive/2025/07)
- [June 2025 (5)](https://blog.commonwealth.com/independent-market-observer/archive/2025/06)
- [May 2025 (5)](https://blog.commonwealth.com/independent-market-observer/archive/2025/05)
- [April 2025 (7)](https://blog.commonwealth.com/independent-market-observer/archive/2025/04)
- [March 2025 (5)](https://blog.commonwealth.com/independent-market-observer/archive/2025/03)
- [February 2025 (2)](https://blog.commonwealth.com/independent-market-observer/archive/2025/02)
- [January 2025 (1)](https://blog.commonwealth.com/independent-market-observer/archive/2025/01)
- [December 2024 (2)](https://blog.commonwealth.com/independent-market-observer/archive/2024/12)
- [November 2024 (2)](https://blog.commonwealth.com/independent-market-observer/archive/2024/11)
- [October 2024 (9)](https://blog.commonwealth.com/independent-market-observer/archive/2024/10)
- [September 2024 (12)](https://blog.commonwealth.com/independent-market-observer/archive/2024/09)
- [August 2024 (11)](https://blog.commonwealth.com/independent-market-observer/archive/2024/08)
- [July 2024 (15)](https://blog.commonwealth.com/independent-market-observer/archive/2024/07)
- [June 2024 (13)](https://blog.commonwealth.com/independent-market-observer/archive/2024/06)
- [May 2024 (11)](https://blog.commonwealth.com/independent-market-observer/archive/2024/05)
- [April 2024 (13)](https://blog.commonwealth.com/independent-market-observer/archive/2024/04)
- [March 2024 (13)](https://blog.commonwealth.com/independent-market-observer/archive/2024/03)
- [February 2024 (11)](https://blog.commonwealth.com/independent-market-observer/archive/2024/02)
- [January 2024 (13)](https://blog.commonwealth.com/independent-market-observer/archive/2024/01)
- [December 2023 (15)](https://blog.commonwealth.com/independent-market-observer/archive/2023/12)
- [November 2023 (19)](https://blog.commonwealth.com/independent-market-observer/archive/2023/11)
- [October 2023 (17)](https://blog.commonwealth.com/independent-market-observer/archive/2023/10)
- [September 2023 (14)](https://blog.commonwealth.com/independent-market-observer/archive/2023/09)
- [August 2023 (16)](https://blog.commonwealth.com/independent-market-observer/archive/2023/08)
- [July 2023 (15)](https://blog.commonwealth.com/independent-market-observer/archive/2023/07)
- [June 2023 (14)](https://blog.commonwealth.com/independent-market-observer/archive/2023/06)
- [May 2023 (16)](https://blog.commonwealth.com/independent-market-observer/archive/2023/05)
- [April 2023 (13)](https://blog.commonwealth.com/independent-market-observer/archive/2023/04)
- [March 2023 (17)](https://blog.commonwealth.com/independent-market-observer/archive/2023/03)
- [February 2023 (14)](https://blog.commonwealth.com/independent-market-observer/archive/2023/02)
- [January 2023 (16)](https://blog.commonwealth.com/independent-market-observer/archive/2023/01)
- [December 2022 (15)](https://blog.commonwealth.com/independent-market-observer/archive/2022/12)
- [November 2022 (14)](https://blog.commonwealth.com/independent-market-observer/archive/2022/11)
- [October 2022 (17)](https://blog.commonwealth.com/independent-market-observer/archive/2022/10)
- [September 2022 (14)](https://blog.commonwealth.com/independent-market-observer/archive/2022/09)
- [August 2022 (17)](https://blog.commonwealth.com/independent-market-observer/archive/2022/08)
- [July 2022 (18)](https://blog.commonwealth.com/independent-market-observer/archive/2022/07)
- [June 2022 (15)](https://blog.commonwealth.com/independent-market-observer/archive/2022/06)
- [May 2022 (17)](https://blog.commonwealth.com/independent-market-observer/archive/2022/05)
- [April 2022 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2022/04)
- [March 2022 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2022/03)
- [February 2022 (19)](https://blog.commonwealth.com/independent-market-observer/archive/2022/02)
- [January 2022 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2022/01)
- [December 2021 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2021/12)
- [November 2021 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2021/11)
- [October 2021 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2021/10)
- [September 2021 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2021/09)
- [August 2021 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2021/08)
- [July 2021 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2021/07)
- [June 2021 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2021/06)
- [May 2021 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2021/05)
- [April 2021 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2021/04)
- [March 2021 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2021/03)
- [February 2021 (19)](https://blog.commonwealth.com/independent-market-observer/archive/2021/02)
- [January 2021 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2021/01)
- [December 2020 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2020/12)
- [November 2020 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2020/11)
- [October 2020 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2020/10)
- [September 2020 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2020/09)
- [August 2020 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2020/08)
- [July 2020 (26)](https://blog.commonwealth.com/independent-market-observer/archive/2020/07)
- [June 2020 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2020/06)
- [May 2020 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2020/05)
- [April 2020 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2020/04)
- [March 2020 (27)](https://blog.commonwealth.com/independent-market-observer/archive/2020/03)
- [February 2020 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2020/02)
- [January 2020 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2020/01)
- [December 2019 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2019/12)
- [November 2019 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2019/11)
- [October 2019 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2019/10)
- [September 2019 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2019/09)
- [August 2019 (26)](https://blog.commonwealth.com/independent-market-observer/archive/2019/08)
- [July 2019 (26)](https://blog.commonwealth.com/independent-market-observer/archive/2019/07)
- [June 2019 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2019/06)
- [May 2019 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2019/05)
- [April 2019 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2019/04)
- [March 2019 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2019/03)
- [February 2019 (19)](https://blog.commonwealth.com/independent-market-observer/archive/2019/02)
- [January 2019 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2019/01)
- [December 2018 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2018/12)
- [November 2018 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2018/11)
- [October 2018 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2018/10)
- [September 2018 (19)](https://blog.commonwealth.com/independent-market-observer/archive/2018/09)
- [August 2018 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2018/08)
- [July 2018 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2018/07)
- [June 2018 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2018/06)
- [May 2018 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2018/05)
- [April 2018 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2018/04)
- [March 2018 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2018/03)
- [February 2018 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2018/02)
- [January 2018 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2018/01)
- [December 2017 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2017/12)
- [November 2017 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2017/11)
- [October 2017 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2017/10)
- [September 2017 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2017/09)
- [August 2017 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2017/08)
- [July 2017 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2017/07)
- [June 2017 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2017/06)
- [May 2017 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2017/05)
- [April 2017 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2017/04)
- [March 2017 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2017/03)
- [February 2017 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2017/02)
- [January 2017 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2017/01)
- [December 2016 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2016/12)
- [November 2016 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2016/11)
- [October 2016 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2016/10)
- [September 2016 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2016/09)
- [August 2016 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2016/08)
- [July 2016 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2016/07)
- [June 2016 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2016/06)
- [May 2016 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2016/05)
- [April 2016 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2016/04)
- [March 2016 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2016/03)
- [February 2016 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2016/02)
- [January 2016 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2016/01)
- [December 2015 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2015/12)
- [November 2015 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2015/11)
- [October 2015 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2015/10)
- [September 2015 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2015/09)
- [August 2015 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2015/08)
- [July 2015 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2015/07)
- [June 2015 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2015/06)
- [May 2015 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2015/05)
- [April 2015 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2015/04)
- [March 2015 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2015/03)
- [February 2015 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2015/02)
- [January 2015 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2015/01)
- [December 2014 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2014/12)
- [November 2014 (19)](https://blog.commonwealth.com/independent-market-observer/archive/2014/11)
- [October 2014 (26)](https://blog.commonwealth.com/independent-market-observer/archive/2014/10)
- [September 2014 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2014/09)
- [August 2014 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2014/08)
- [July 2014 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2014/07)
- [June 2014 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2014/06)
- [May 2014 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2014/05)
- [April 2014 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2014/04)
- [March 2014 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2014/03)
- [February 2014 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2014/02)
- [January 2014 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2014/01)
- [December 2013 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2013/12)
- [November 2013 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2013/11)
- [October 2013 (27)](https://blog.commonwealth.com/independent-market-observer/archive/2013/10)
- [September 2013 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2013/09)
- [August 2013 (26)](https://blog.commonwealth.com/independent-market-observer/archive/2013/08)
- [July 2013 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2013/07)
- [June 2013 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2013/06)
- [May 2013 (26)](https://blog.commonwealth.com/independent-market-observer/archive/2013/05)
- [April 2013 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2013/04)
- [March 2013 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2013/03)
- [February 2013 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2013/02)
- [January 2013 (30)](https://blog.commonwealth.com/independent-market-observer/archive/2013/01)
- [December 2012 (34)](https://blog.commonwealth.com/independent-market-observer/archive/2012/12)
- [November 2012 (39)](https://blog.commonwealth.com/independent-market-observer/archive/2012/11)
- [October 2012 (42)](https://blog.commonwealth.com/independent-market-observer/archive/2012/10)
- [September 2012 (36)](https://blog.commonwealth.com/independent-market-observer/archive/2012/09)
- [August 2012 (30)](https://blog.commonwealth.com/independent-market-observer/archive/2012/08)
- [July 2012 (31)](https://blog.commonwealth.com/independent-market-observer/archive/2012/07)
- [June 2012 (18)](https://blog.commonwealth.com/independent-market-observer/archive/2012/06)

see all

### Subscribe

- [RSS](https://blog.commonwealth.com/independent-market-observer/rss.xml)

### Disclosure

The information on this website is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.

Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. Diversification does not assure a profit or protect against loss in declining markets.

The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. All indices are unmanaged and investors cannot invest directly in an index.

The MSCI EAFE (Europe, Australia, Far East) Index is a free float‐adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consists of 21 developed market country indices.

The Dow Jones Industrial Average is computed by summing the prices of the stocks of 30 large companies and then dividing that total by an adjusted value, one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities.

The Russell 2000 is a market-capitalization weighted index, with dividends reinvested, that consists of the 2,000 smallest companies within the Russell 3000 Index. It is often used to track the performance of U.S. small market capitalization stocks.

One basis point (bp) is equal to 1/100th of 1 percent, or 0.01 percent.

The VIX (CBOE Volatility Index) measures the market’s expectation of 30-day volatility across a wide range of S&P 500 options.

The forward price-to-earnings (P/E) ratio divides the current share price of the index by its estimated future earnings.

Third-party links are provided to you as a courtesy. We make no representation as to the completeness or accuracy of information provided on these websites. Information on such sites, including third-party links contained within, should not be construed as an endorsement or adoption by Commonwealth of any kind. You should consult with a financial advisor regarding your specific situation.

Member [FINRA](http://www.FINRA.org), [SIPC](http://www.SIPC.org)

Please review our [Terms of Use](https://www.commonwealth.com/terms-of-use).  <http://www.commonwealth.com/termsofuse.html>

Commonwealth Financial Network®

<http://wordpress.com/?ref=footer>