Daily Market Update 5/3/12

Mortgage rates were essentially unchanged Thursday ahead of tomorrow's key employment data.  In economic news, weekly Jobless Claims fell to 365,000, below the consensus forecast of 375,000.  First quarter Productivity declined by 0.5%, matching expectations.  The Institute for Supply Management services index fell to 53.5 from 56.0.  Readings above 50.0 indicate expansion the the services sector of the economy.  The European Central Bank (ECB) made no change in rates.  The ECB President stated that the ECB expects inflation to remain above the target rate in 2012, suggesting that rate cuts will be unlikely.  The closely-watched Non-Farm Payrolls report for April will be released Friday at 8:30 AM.