Editor
The June nonpayroll report beats all expectations by adding 372.000 new jobs in June.
The combat against inflation continues, and Wall Street heads into its five days of winning this week. Today, the treasury bond market is declining, and Wall Street indexes are waffling to avoid losses.
Yesterday the labor department released the weekly jobless claims, which came with positive growth concerns. According to the report last week, jobless claims jumped to their highest since January. The data shows that the claims posted for five consecutive weeks totaled 230.000. which was estimated to be the highest recorded since Junreyt jobless claims data. As for this week, the applications for aid jobs increased from 4.000 to 350.000 by yesterday.
What is more concerning is the fact that the number of Americans who registered to benefit from unemployment aid increased in July. The report shows that the total number of Americans who benefit from unemployment aid is 1.375.000 and it’s growing. According to today’s report, the number of unemployed people remained the same at 5.9 million in June.
However, the other said the Labor Department reports increased the investors’ outlook despite growing concerns and a rescission possibility.
Beating the experts and analysts’ forecast, the labor market in June added more jobs than expected despite the rising tension and increased fears about recession. In June, the US economy added 372,000 new jobs, divided into different sectors and fields. The unemployment rate is 3.6%. The report shows notable gains occurred in professional and business services, hospitality, and leisure.
Here are some of the labor department data:
Leisure and hospitality added 67,500 new jobs.
Transportation and warehousing added 36,500. On top of that, compared to February 2020, transportation and warehousing are 750.000 higher.
Manufacturing added 29.000 jobs, information added 25.000 jobs, and social assistance rose by 21.000.
The initial analysis believes that the fastest increases in food and energy prices will slow the economy’s growth. But June’s labor market reports suggest the opposite: the market is healthy and marching straight. The hourly earnings rose by 0.3% from Mai’s data, showing a significant improvement. Over the past 12 months, the hourly earnings rate rose by 5.1%, improving American workers’ ability to keep up with some of the increasing prices.
This data will encourage the central banks and the Federal Reserve and give them extra confidence in pursuing their aggressive interest rate hikes. Next week, the second-quarter earnings results will be released, which are estimated to show that the second-quarter GDP will decline by more than 2%. As for wall street, by the end of the evening trading hours, the S&P gained 0.05%, the tech-heavy Nasdaq added 0.12%, and the Dow Jones industrial rose by 0.04%.
The Federal Reserve is now more than 90% positive with a 75bs interest hike in the next meeting. Investors will now turn their attention to the second ureter report, which is expected to play a significant role in policymakers decisions next week.
