Don't Expect Any Change in Fed Rethoric

        15:03 EDT - BNP Paribas says April employment report supports the view that growth will rebound in 2Q after weather-related weakness last quarter. "We expect to get nearly all of Q1's 0.9pp downside surprise in growth, relative to our forecast, back in Q2," firm writes, and revises its 2Q growth forecast "to 3.5% q/q saar from 2.6% previously." Increased healthcare spending likely to persist into early 2Q, partly offset by less spending on non-durable and durable goods, BNP says. Meanwhile, don't expect much change in Fed rhetoric after the job report as the gauges Yellen watches "still suggests there is a substantial amount of slack" in the job market. (john.shipman@wsj.com; @jhcshipman)
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        (END) Dow Jones Newswires

        May 02, 2014 15:03 ET (19:03 GMT)