Europe, Detroit Give Markets a Boost

Matt Nesto analyzes the morning business headlines.
5:22 | 05/02/13

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Transcript for Europe, Detroit Give Markets a Boost
Market futures up this morning because of good news out of Europe and Detroit today here to tell us more perhaps could have Matt -- out from Yahoo! finance good morning Matt. He's done so before we get to Europe and Detroit let's start with the weekly jobless claims that came out an hour ago what did they show. Well down again you know and then the best I've always seen in the long long time 324000. Much better than. Economists had been looking for -- necessary contradictory to the -- that we had the day before. Which was a hiring figure and of course proceeds tomorrow's big hiring port so it's kind of -- we're seeing mixed signals here -- the unemployment numbers actually looking to be improving -- the hiring numbers the employment numbers. Appear to be worsening. So there could be some revision in the days ahead that's possible. I'll always revisions there were the week before they tend to always be revisions hires. Higher I don't understand how it always works that way when it does your what we're still. You know taking down and really close to three million and -- continuing claims basis of whereas 342000. On the four week moving average. So we'll take a little wait and see there all right let's go overseas for a moment the European Central Bank is cutting their interest rates to half. A percent why was this needed and is it going to do with the -- -- well. Well I think it was general pershing -- who once said do something -- admits the wrong thing. They've cut their benchmark rate from three quarters of a percent to half -- percent don't expect people to suddenly you know -- -- wake up Mabel and say we're going out to do some stuff we've been waiting for that's. But you know they have a very sluggish economy. They're fighting a recession. They have double digit unemployment that's rising -- ours is falling two and they needed to do something to show that there on the job it's really not spark markets it was completely expected tonight here today. But here -- trying to fix that. They get a lot of people are still saying -- doesn't matter what you do banks in Greece and Cyprus are just too scared to lend any money at all. Right and and more mundane places like Spain and and Italy. The problem also is is that they have the periphery states like you know Greece and Cyprus and things like that and then the core. Of the European -- places like Germany we had on -- Merkel that the German chancellor. Saying that they actually need higher rates in their economy that they're worried about inflation and this is one of those situations. Where you have you know the diversity. The economics that you situation. And all the different. Areas in parts of the European Union are are showing you know the difference between the haves and the have nots and that's way this kind of a rate cut. Is symbolic but contentious. Right absolutely -- let's bring it back home where I guess we we do have some good news out of Detroit. Both from Ford and G and that's something we haven't heard for some time General Motors put out its earnings report and beat expectations. Yet they did Iran and excited as bases you back out one time items they came in what 67 cents a share vs a 56. Cent estimate their profit on a net income basis was down about 14%. But some of the things that really stood out -- record sales in China are shrinking loss in the European operations for GM only a 175 million -- say it only because they did they did about. 37 billion in revenues their revenue was down about 2.4 percent. They also saw their market share in the US. Go up in their Silverado pickup truck sales were strong for so we a lot of GM that -- been as has afford those stocks are both up about 50% in the last eight months since last August they really just have been taken off. So -- this is decision confirming that Ford as you mentioned also kind of a pick -- truck story we are pick up truck nation. There are hiring like 2000 more workers to help build those -- 15. -- that's fantastic adding 2000 jobs -- so it certainly seems that the car industry at least has made it. Full and healthy recovery. You know its current while the Wright -- and that's a lot of people -- that we look at you know today's weekly unemployment claims against 324000. Sorry it just gives you a scope of how big and how vast. This economy is in the course tomorrow will be looking to see how many. Nonfarm payroll jobs were created. In the month of April will be looking like a 150000. Which -- -- -- back from the 88000 but again you know and a at all helps but truly. It's just a drop in the bucket. Re absolutely welcome -- in just about an -- -- President Obama set to nominate businesswoman penny Pritzker as his new commerce secretary. What do you think we can expect from her. Well loyalties somebody. Her -- the Chicago was seen she's obviously. An heiress to the Pritzker family fortunes is a philanthropist she's been -- CEO. Her family controls the Hyatt hotel chain for example. The commerce secretary job is some sort of like being that the chamber of commerce right you -- -- -- sell the US they are in charge of all the data reports that we've been talking about the control the Bureau of Economic Analysis. So you know we can expect her to you know carry the -- and -- sell the -- Be good cheerleader all right -- let's say one more look at the Dow right now before we -- -- go up about fifty points out. We'll say that's a pretty pretty strong start to the morning -- thank you so much you welcome.

This transcript has been automatically generated and may not be 100% accurate.

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