Photo: Flickr / lotopspin
It was jobs day in America.First the scoreboard:
Dow: 12,772, -124.2, -0.9%
S&P 500: 1,354, -12.9, -0.9%
NASDAQ: 2,937, -40.0, -1.3%
And now the top stories:
- The jobs report disappointed America for the third month in a row. According to the Bureau of labour Statistics, U.S. companies added just 80k net new jobs, which was short of the 100k expected by economists. This was largely due to private payrolls, which grew by just 84k; economists were looking for an increase of 106k. The unemployment rate was unchanged at 8.2 per cent. SEE ALSO: The Most Unemployed City In Every State >
- And despite what many say, the jobs report wasn’t a complete disaster. The healthcare sector saw a big jump in employment. Previous jobs data was revised upward, and hourly earnings were better than expected. Excluding seasonal adjustments, jobs are actually up by a decent amount. SEE ALSO: Here’s What The World’s Biggest Companies Are Telling Us About The Economy >
- Some were strangely hoping for an even worse number, which would motivate the Federal Reserve to introduce some new easy monetary policy to stimulate the economy. Morgan Stanley’s David Greenlaw, who was live-tweeting the report, acknowledged the weak jobs number, while arguing that we were unlikely to see easing in the form of quantitative easing any time soon. The drop in gold prices would confirm such sentiment. SEE ALSO: The Most Employed City In Every State >
- For what it’s worth, the Wall Street Journal’s Jon Hilsenrath disagrees with Greenlaw and the entire gold market. “Friday’s disappointing jobs report increases the likelihood that the Federal Reserve will launch a new bond-buying program to boost economic growth, though it doesn’t ensure such a move,” he wrote. It’s worth noting that markets rallied off of their lows right around the time Hilsenrath’s article was published.
- Speaking of bad jobs news, Best Buy is reportedly laying of 2,400 employees including over 600 members of its Geek Squad.
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