The White House has said that Chrysler will enter Chapter 11 bankruptcy. Fortunately, the bankruptcy news isn’t derailing the stock market today. Asia and Europe are up on the Fed’s statement that things are getting better. Obama will have more to say about Chrysler at noon.
The good news this morning is that initial jobless claims dropped by 13,000 to 631,000 which was 9,000 below forecast. Also, the April Chicago PMI, which is a key gauge of future economic growth, jumped to 40.1 from 31.4. This was well above the consensus 35.0 and the highest reading since September. This is very encouraging.