1. Producer prices unexpectedly surged in April, well above consensus estimates. The March inflation rates were also revised upward.

• PPI inflation jumped across goods and services.

• Energy prices continue to increase rapidly as a result of higher oil prices.

– Transportation and warehousing services prices leapt, reflecting higher gasoline and jet fuel prices.

• Business markups rose sharply. Retailers might be taking advantage of strength in consumer spending enabled by the tax refunds, so the surge is unlikely to be sustainable.

• While the PPI numbers were undoubtedly strong, the components relevant for PCE were mixed.
– Passenger airfares rose further.

– The portfolio management component declined.

2. Mortgage applications rebounded as the 30-year fixed mortgage rate remained stable (+1 bp).

• Refinancing activity ticked down.

3. Homeownership among adults ages 25 to 34 fell for the second consecutive year to 30%.

• Here’s a look at young adult homeownership by metropolitan area.

4. The final Chicago Fed CARTS estimates show that retail sales ex-auto for April rose by 0.8% month over month …

… while the inflation-adjusted measure was flat.

5. Bank of America survey shows that most travelers are adjusting, but not canceling their summer travel plans in response to the higher oil prices.

• Spending on airline transactions has weakened.

6. The net change in jobs (hires minus layoffs) has changed little in the information technology sector, but there’s been a surge in labor churn (hiring and firing activity).