| Economic Events | Construction spending during April was estimated at a seasonally adjusted annual rate of $1,310.4 billion, 1.8% above the revised March estimate of $1,286.8 billion, the Census Bureau announced. The April figure is 7.6% above the April 2017 estimate of $1,217.7 billion. During the first four months of this year, construction spending amounted to $387.0 billion, 6.6% above the $363.1 billion for the same period in 2017. Total nonfarm payroll employment increased by 223,000 in May, and the unemployment rate edged down to 3.8%, according to the Bureau of Labor Statistics. Employment continued to trend up in several industries, including retail trade, health care, and construction. THE ECONOMIC WEEK AHEAD: Today, the Census Bureau will report about factory orders for April. Thursday, the Labor Department will issue its initial claims report. Friday, the Census Bureau will report about wholesale inventories for April. | | Market Mirror | Friday, the Dow gained 219.37 points (0.90%) to finish at 24,635.21, the NASDAQ closed 112.22 points (1.51%) higher at 7,554.33, and the S&P 500 increased 29.35 points (1.08%) to 2,734.62. The Russell 2000 was up 14.37 points (0.88%) at 1,647.98, and the Wilshire 5000 climbed 280.16 points (0.99%) to 28,498.62. The price of the 10-year Treasury note was down 12/32, increasing its yield to 2.902%. The price of the 30-year Treasury bond decreased 17/32, bringing its yield up to 3.052%. WEEK’S WORTH: For the week ending June 1, the Dow was down 0.48%, while the NASDAQ gained 1.62%, and the S&P 500 was up 0.49%. The Russell 2000 finished 1.29% higher, and the Wilshire 5000 increased 0.58%. | | Compliance | PBGC Report Shows Dire Status for Multiemployer Plan Insurance Program | The Pension Benefit Guaranty Corporation’s (PBGC)’s Multiemployer Insurance Program continues to face insolvency by the end of fiscal year 2025, according to findings in the FY 2017 Projections Report. The new projections show a narrower range of years for the likely date of insolvency of the Multiemployer Program. The likelihood that the Multiemployer Program will run out of money before the end of FY 2025 has grown to more than 90%, and there remains a significant chance the program will run out of money during FY 2024. The likelihood the program will remain solvent after FY 2026 is now less than 1%. If the Multiemployer Program were to run out of money, current law would require the PBGC to decrease guarantees to the amount that can be paid from premium income, which would result in reducing guarantees to a fraction of current values. PBGC Director Tom Reeder recently told the Joint Select Committee on Solvency of Multiemployer Pension Plans that insolvency of the PBGC multiemployer program could result in participants in failed multiemployer plans receiving a very small fraction—an eighth or less, on average—of the current benefit guarantee level.Read more > | Taxpayer Association Seeks to Derail California Secure Choice | According to the text of the complaint, the act that created the California Secure Choice program “violates the Supremacy Clause of the United States Constitution because it is expressly preempted by the Employee Retirement Income Security Act of 1974.”Read more > | | From the Magazine | Finding the Best Course | When and how to claim Social Security may be, in a very real sense, the largest single point-in-time financial decision over most individuals’ lifetimes. Despite this, Baby Boomers retiring today are not doing enough to smartly coordinate the claiming of Social Security with defined contribution (DC) retirement plan withdrawals, warns William Meyer, founder and managing principal of Social Security Solutions in Leawood, Kansas. Better decisions in this domain can dramatically reduce lifetime tax burdens and extend the life of a retirement portfolio by a decade or longer, he says.Read more > | | Small Talk | ON THIS DATE: In 1783, a hot-air balloon was demonstrated by Joseph and Jacques Montgolfier. It reached a height of 1,500 feet. In 1784, Marie Thible became the first woman to fly in a hot-air balloon. The flight was 45 minutes long and reached a height of 8,500 feet. In 1892, the Sierra Club was incorporated in San Francisco. In 1896, Henry Ford made a successful test drive of his new car in Detroit, Michigan. He called the vehicle a “Quadricycle.” In 1919, the Senate passed the Women’s Suffrage bill. In 1939, the first shopping cart was introduced by Sylvan Goldman in Oklahoma City, Oklahoma. It was actually a folding chair that had been mounted on wheels. In 1942, the Battle of Midway began. It was the first major victory for America over Japan during World War II. In 1944, during World War II, the U.S. Fifth Army entered Rome, which began the liberation of the Italian capital. In 1947, the House of Representatives approved the Taft-Hartley Act. The legislation allowed the President of the United States to intervene in labor disputes. In 1974, Sally Murphy became the first woman to qualify as an aviator with the U.S. Army. In 1998, George and Ira Gershwin received a star on the Hollywood Walk of Fame. | SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “During the summer months, do you think your workplace temperature is too hot or too cold? Also, which listed options have you done concerning the office temperature in your workplace?” Nearly half of responding readers (47.2%) reported that during the summer months, their workplace temperature is too cold. Three in ten (30.6%) described it as sometimes too hot, but sometimes too cold. While nearly half (46%) of responding readers admitted they have secretly adjusted the workplace thermostat, the majority reported they have complained to co-workers (68.2%) and complained to management (50.8%). Responses by readers who chose to leave comments suggest that most workplaces do not get the temperature right. Most readers say their workplaces are cold no matter what the season. Readers suggested keeping a sweater or jacket at the workplace, dressing in layers, and using space heaters or a fan. One reader who feels the workplace is too hot is anxiously awaiting the person in charge of the thermostat to go through menopause. Editor’s Choice goes to the reader who said: “Remember the working at home survey? All arguments disappear :)” Thanks to everyone who participated in the survey!Read more > | Share the news with a friend! Pass the NewsDash along and tell your friends/associates they can sign up for their own copy.Read more > |
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