"So it seems the official government jobs report today is even worse than the ADP "private payrolls" report yesterday. According to ADP, private payrolls grew by only 54,000 net new jobs in August. According to the U.S. Bureau of Labor Statistics, though, all non-farm payrolls grew by only 22,000 in August. That's less than half as much. It's also less than one-third of the 75,000 net new jobs economists were forecasting BLS to report."
"Why? Well, the most popular theory is that "bad news is good news" when it comes to interest rates. Meaning the worse the economy looks, the more the Federal Reserve will feel urged to lower interest rates to encourage lending activity, and reaccelerate the economy. And with two back-to-back bad jobs reports, the odds are looking better than ever that when the Federal Open Markets Committee meets in a couple of weeks, it will decide to lower interest rates."
"A handful of S&P 500 component companies reported earnings after close of trading last night. Lululemon Athletica ( Nasdaq: LULU) beat earnings by $0.23 per share, earning $3.10 per share in Q2 despite revenues coming in $10 million short of expectations at just over $2.5 billion. Unfortunately for shareholders, lulu guided for a revenue miss in Q3, and a pretty substantial earnings miss as well"
US nonfarm payrolls increased by 22,000 in August, substantially below economists' forecast of 75,000 and far less than ADP's private payrolls estimate of 54,000. The August readings imply weaker labor-market momentum and boost expectations for an interest-rate cut by the Federal Reserve at the September 17 policy meeting. Markets reacted by sending the Vanguard S&P 500 ETF up about 0.4% in premarket trading amid the perception that softer data could spur looser policy. Several S&P 500 companies reported earnings after the close, including Lululemon, which beat per-share earnings but missed revenue guidance and forecast further Q3 revenue and earnings shortfalls.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]