U.S. Spending Up Despite Payroll Tax

Jeff Macke analyzes the morning business headlines.
6:33 | 04/29/13

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Transcript for U.S. Spending Up Despite Payroll Tax
Market futures up this morning because of gains in Europe and the state -- lingering -- -- new personal income and spending data came out this Monday morning. What -- bring in Jeff MacKey from Yahoo! finance to break down those numbers for us and also get a look at the rest of the business headlines -- this Monday jet -- good weekend. I had a real good -- -- how about you I had a fantastic weekend as well and so will begin. Ought to and out of positive note hopefully for this Monday morning -- -- personal income numbers for the month of march what they show us. Well we saw a little weakness in payrolls by -- little better than expected and terms of what we expect the consumers leader now the payrolls number. That's slowing and so that gives me pause a little bit. In terms of companies going out there during some hiring -- -- forts with a little bit weak data we've seen. From employment as a whole GDP was disappointing last week so the economy might be not so much. Coming in for a hard landing but just sort of pausing a little bit at a bad timing here. Arlo wobbling at that comment in connection with this is well because consumer. Group growth in consumer spending was shown at two -- -- percent. More was expected analysts in fact we're expecting. Essentially four to remain flat. So I mean what does that mean -- mean are people not affected by that payroll tax hike you know it. Kids from what we're hearing from the retailers and some of the other groups they are affected -- on the margins maybe not as we thought before and our sport remember these data points are kinda just. -- data from a huge huge survey pool so there's a little bit of a margin error there. I'm not sure the consumers on how big fan of the consumer but I'm not so sure they're going to be -- keep -- that spending pace. In the face of a little bit of uncertainty I never ever make a rule to never ever. But against the US consumer but in this case they're doing kind of what they should do which is Poland and the horns a little bit. Now are -- pharmaceutical news this morning Merck and Pfizer joining forces to come up with a new drug to treat type two diabetes. It's a little unusual for this kind of camaraderie that cats and dogs and -- all kinds of strangeness and -- -- -- -- McCoy is coming out on drug. We've got some expertise -- more on type two diabetic. Oral type of medication which is great advisors felt the super dragons -- -- gonna hold hands and allowed to gather. It's not as unprecedented as it sounds these companies had enormous expenses associated with developing the drugs so make sense to -- partnership and some of these cases. It doesn't mean the two companies are tonight combined and -- who might how to gather and share company meeting. But it is a Smart way to go but -- -- these drugs and it goes without saying but I'll say it anyway it be nice we get a foothold on type two diabetic treatment. And that absolutely goes without saying absolutely I -- later this week all those companies are becoming -- earnings on -- farms pharmaceuticals and in general. Still -- safe -- is what they used to being. You know that's the -- they get but that's not really the case -- move along with the market -- at the correlation is very very high. And so we used to see out of these companies was the dividend was such that they were the original pay you to wait widow and orphan type of stocks. That's not so much the case anymore you can get a lot of different yields at around three and a half percent were murky as. Apple is around the same way and -- these arms so much safe haven companies as they just are big companies that reflect the index's as a whole. Although apple -- unstable as of recently as well well it out. Apple is those companies demonstrate. That these dividends these -- -- -- backs never ever trump the fundamentals and so throughout their shopping for stocks thinking that -- 3% yield. Is really going to be enough to offset the risk you gotta update those finance books -- it's your thoughts on Chrysler because they came out with fair Q1 numbers this morning what was the big standout. Well this and I was that the earnings were down -- much from a year before Britain don't under the headline. You see that Chrysler is revamping revising and re releasing a lot of different models and so what they've done. Is they pulled back some sales in the now because they've got a big second half of the year. In terms of some of their -- models coming out and so we didn't expect during his mom in terms of execution. Given me the number updates they have coming on the -- well this is pretty and it wasn't bad priceless and make -- money for awhile now. And that's quite a turn from our resolve them for five years ago so this is -- as steady as she goes and we've heard this news before Europe. Go figure the US recovering slightly so Chrysler has confirmed that they're better off than they were five years ago but not exactly hitting on all cylinders if you will. Absolutely will take the -- on a Monday morning and I think things are cut -- in Detroit what's -- are ready to stay competitive with Ford and GM. -- got to stay where they are riches in the distant rear view mirror Chrysler's not gonna catch up to those guys and nor should -- really try they're kind of a plug in charge. It's no longer the Big Three so much it's kind of GM which is -- government related company whatever Chrysler's doing and Ford. Right there in the middle united -- depends on these brands -- -- present in the back half of the year. But -- -- expect anything too stunning for mother don't are art from cars to -- Last week billionaire investor George Soros he bought. Sizable stake in the -- and the company. But this is all coming after the CEO was kicked out and they brought back their old one. -- everyone is trying to root for JC Penney's -- I mean can the company get back on its feet. -- the company yet. Whether or not they get back on their feet is one thing but what we learned with this loan deal. Which by the way they're gone just tremendous terms triumph of hope and Goldman Sachs who got the debt underwriting -- But that gives them a lifeline and so the question six months ago three months ago to in the last week was whether or not JC Penney could make it to the Christmas selling season. Now they can and -- the hedge funds were rather impressively getting along this company last week ahead of the debt deal -- them. Behave and they are kind of loading up here lot of folks fares on JCP a lot of people shortage. A big part of that short Jesus was that the company was gonna go -- by and they may do that and -- few years and that's -- the stock so very strong both last week and this morning. All right well let's get the big -- approach ago the Dow is trading up about sixteen points at 141720. Not -- to back for a start for the Monday. Jeff MacKey for Yahoo! finance sir have a great Monday a -- my friend.

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

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