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US Job Report Shows 187,000 New Hires in July, While Wall Street Takes a Dip
As expected, U.S. nonfarm payrolls for July released this morning came in lower than expected at 200.000 jobs. The job report shows signs of a cooling labor market compared to the previous two months.
In July, the United States added 187.000 new jobs, down by 2.000 positions from the previous number of 185.000.
Marketers were betting on at least 190,000 this month. Still, it remains an improvement for the working force. On the other hand, cooling hiring numbers have no effect on workers productivity. On the contract last week, reports showed a significant increase in workers productivity.
With the July and June job growth reports, there are some positive signs suggesting that inflationary pressures might be easing up. Also, it seems like the job market is cooling down, which supports that idea.
But wait, there’s more! The upcoming jobs report is going to be a game-changer. It will play a major role in determining what the Fed decides to do with its monetary policy. And get this: the report in August, just before the September FOMC meeting, is going to be even more critical.
Meanwhile, the U.S. The unemployment rate showed a slight improvement, ticking down to 3.5% from 3.6%. This suggests that the job market is maintaining its strength and robustness. On the other hand, average hourly earnings remain stable, which is considered relatively good news.
From the Fed’s perspective, there will be no interest rate hike this month, but investors are expecting a hike in September at only 15.5%.
Other economic news Wall Street declined after edging higher this morning. Apple and Amazon were about to save the day; most features rose by an average of 0.30%. Yet, as of 14:40 a.m., all indexes were down, heading to their first down week this month.
The S&P 500 benchmark was down by 0.48%, the Nasdaq was down by 0.25%, and the Dow futures were down by 0.38%.
Tech giants deliver better-than-expected quarterly earnings reports, assuring that the U.S. economy has beaten inflationary pressure. Apple’s quarterly revenue exceeded forecasts owing to robust demand for its services, resulting in a 2.3% increase in net profit to $19.9 billion. However, overall income declined as consumers cut back on purchases of iPhones and iPads. The company’s services division did admirably, with $21.2 billion in sales and a huge rise in users. Amazon’s cloud computing branch, AWS, on the other hand, reported slower growth of 12% in the second quarter, but it was better than projected, sparking optimism for a recovery. Despite the AWS slowdown, Amazon’s online store sales increased by 5%, resulting in better profitability and overall net sales that exceeded estimates. As a result, Amazon’s stock rose significantly before the market opened.
Meanwhile, Saudi Arabia and oil leaders announced that there will be more oil cuts in the future. This move will tighten the global supply, which could affect the global economy and the U.S. currency as a whole.
