The number of Americans filing for jobless benefits inched up last week but remain at healthy levels
WASHINGTON (AP) — The number of Americans filing for jobless benefits inched up last week but remain at healthy levels.
WASHINGTON (AP) — The number of Americans filing for jobless benefits inched up last week but remain at healthy levels.
Reed Jobs, the eldest son of Steve Jobs, founded his own VC firm to focus on cancer treatments in 2023.
Investors are looking to the June jobs report for signs of more softening in the labor market that could lay the ground for rate cuts.
U.S. employment increased solidly in June, but government and healthcare services hiring made up about three-quarters of the payrolls gain and the unemployment rate hit a 2-1/2-year high of 4.1%, pointing to a slackening labor market that keeps the Federal Reserve on course to start cutting interest rates soon. The Labor Department's closely watched employment report on Friday also showed the economy created 111,000 fewer jobs in April and May than previously estimated, suggesting the trend in payrolls growth was slowing. About 277,000 people joined the labor force, accounting for the increase in the jobless rate from 4.0% in May to the highest level since November 2021.
The latest Non-Farm Payroll (NFP) report for June has landed, and analysts have been quick to release notes interpreting the implications for the U.S. economy.
The June jobs report comes at a crucial moment as economists debate whether the US labor market is still normalizing to pre-pandemic levels or showing the early signs of a broader slowdown.
While June payrolls were stronger than expected, the unemployment rate again moved up. The U.S. unemployment rate edged higher to 4.1% last month, a touch above the consensus forecast. Economists had expected the unemployment rate would hold steady at 4% in June, after ticking up a tenth of a percent in May. The last time that unemployment was above 4% was in November 2021, when the rate was also 4.1%.
June's jobs report is yet another sign pointing to the US job market cooling. PNC Financial Services Group chief economist Gus Faucher joins Market Domination to discuss the reading and what it means for the overall economy. "I read this report as being very positive. The job market continues to improve, but the pace of job growth is slowing towards a more sustainable pace over the longer run. We saw slower wage growth, which is reducing inflationary pressures from the labor market. But at the same time, wages are increasing more quickly than inflation. So household incomes are going up and the economy should continue to expand. So I think if you're at the Fed, this is what you want to see," Faucher explains. He notes that the unemployment rate at 4.1% indicates "a bit more slack in the labor market." He explains that the Federal Reserve is balancing the right time to cut without stoking inflation. He anticipates the Fed's first interest rate cut to come in November since they risk political criticism if they cut in September. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl
Nonfarm payrolls rose above expectations in June, with the US Bureau of Labor Statistics reporting 206,000 new jobs compared to the expected 190,000. However, the US unemployment rate ticked up to 4.1%, higher than the estimated 4.0%. RSM chief economist Joe Brusuelas joins Morning Brief to discuss the print and what it means for the overall health of the economy. "This is what full employment looks like. This is what you want to see. This is a very good number," Brusuelas says. He explains that the print is good news for the Federal Reserve, as the economy is responding to higher interest rates and cooling down: "A policy rate in a range between 5.25% and 5.5% is no longer appropriate for an economy that has an inflation rate of 2.6% — taken out to three decimals is 2.563%. Moreover, growth is cooling, hiring is cooling, the economy is normalizing. We're moving back to that pre-pandemic trend." Brusuelas adds, "I'm more comfortable with the Fed actually hinting in July that they were going to go in September. If I'm a Fed member, I'm actually thinking about July. They want to get out in front of what's going to be a decelerating job market." He anticipates inflation to hit 2.3% by the end of the year, stating "we're within shouting distance" of the Fed's target of 2%. While many have their sights set on September for the first rate cut, he says, "I'm comfortable even with them considering July at this point, because I do think the economy is just normalizing. I want to be clear here, guys: This isn't a crack in the job market. It's not the economy's foundations cracking. We're moving back to trend." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl
Nonfarm payrolls rose above expectations for the month of June, the US Bureau of Labor Statistics reporting 206,000 new jobs added to the economy against economist estimates of 190,000. The US unemployment rate ticked up to 4.1%, while many experts were originally forecasting it to hold at 4.0%. The Morning Brief's Brad Smith and Brian Sozzi break down the latest jobs print. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan.
On today's episode of Morning Brief, Brian Sozzi and Brad Smith break down the market open and some of the biggest stories from the trading day, from June's jobs report to the results of the UK general election. US equity markets (^DJI, ^IXIC, ^GSPC) opened Friday's session largely flat, coming off the July 4th holiday and June's jobs data. Nonfarm payrolls rose above expectations for the month of June as the US Bureau of Labor Statistics reported 206,000 new jobs added compared to economist estimates of 190,000. The US unemployment rate ticked up to 4.1%, while many experts were originally forecasting it to hold at 4.0%. A meriprise Financial Vice President of Equity Research Justin Burgin characterizes the data positively, highlighting the job additions and the unemployment numbers and noting that "it beats what we got last month." Acting US Secretary of Labor Julie Su joins The Morning Brief to discuss the employment growth seen under the Biden administration, saying, "If you recall, on this day in 2020, under the last administration, the unemployment rate was nearly 12%, and there was no national strategy to address the economy or the global pandemic." Secretary Su adds, "President Biden came in with a national strategy, we've been implementing it, and of course there's more work to do." Collapsed bitcoin (BTC-USD) exchange Mt. Gox is reportedly beginning to pay back the nearly $9 billion in bitcoin it owes to customers from its 2014 bankruptcy. With the influx of the cryptocurrency into crypto markets, investors are concerned that customers might sell off the coins quickly. Token Bay Capital Founder and Managing Partner Lucy Gazmararian notes that the Mt. Gox repayment event has been "tracked quite thoroughly in Bitcoin circles" and was largely "anticipated." She suggests that "any selling [in bitcoin] is likely to be staggered" rather than occurring all at once. Moreover, she questions whether significant selling will materialize at all, stating, "people are likely to hold bitcoin for the longer term." Keir Starmer led the Labour Party to a landslide victory in Britain's July 4th election. Yahoo Finance Senior Reporter Akiko Fujita analyzes the British pound's reaction to these headlines and Goldman Sachs' current outlook on Britain's economic growth as Starmer shifts into his new leadership role as UK prime minister. Over in the US, President Joe Biden is under pressure from key Democratic donors — like Disney (DIS) heiress Abigail Disney — who are withholding their money until he steps aside as the Democratic nominee in the 2024 presidential election. On the tech front, Nvidia (NVDA) shares dipped in pre-market trading after New Street Research downgraded the chipmaker's stock to a Neutral rating. On the other hand, shares of Samsung (005930.KS) have jumped to their highest level since January 2021 after the company posted its fastest pace of sales and profit growth in several years. This post was written by Melanie Riehl
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