Lots of data out since the start of trading, most of it good, but there is also a thread of caution.

US Consumer Sentiment came in at 97.0, which is below consensus of 98.0, but slightly ahead of last March 96.9.  The highlight is the reading on improved financial situation to 50% (March and April), the highest in the last 15 years, which is a reflection of improved jobs market.

Expectations edged to 87,  which is a three month high, driven by political independents (42% of total), climbing to 91.3 from 85.8, as Democrats remain extremely pessimistic and Republican optimism eased slightly.

Another data point that makes us forget about first quarter GDP is the Employment Cost Index, which was the favorite data point for Alan Greenspan. 

The increase of 0.8 represents the fastest pace since 2007.  It give hopes that we’ll see stronger wage numbers in the jobs report next week.  Wages (70% of total compensation) are surging, benefits are also climbing, and with the ever-tightening jobs market, both are poised for even faster growth.

Chicago PMI

More great news in the manufacturing sector as the Chicago PMI came in at 58.3 from 57.7 powered ahead by a surge in new orders:

• New Orders 65.9 +5.5
• Employment 53.8 +4.7
• Production 59.5 -2.2
• Backlog 43.0 -6.6
• Prices Paid 62.9 -1.8

The market is limping out the week consolidating gains and bracing for next week’s massive round of economic data that culminates with the jobs report.  Meanwhile, Congress stepped up to the plate and kept the government open for another week- Go Team!

Have a great weekend.