163k Jobs Number Good for a Friday Rally
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Markets are moving higher in pre-market trading Friday following a better than expected jobs number. Analysts were calling for a jobs gains of 100k, but government data showed a surprised gain of 163k. This was above expectations and was the largest gain since February.
Traders weren't totally blind going into the numbers, since an earlier ADP report this week pointed to better than expected results in private employment. Regardless, the higher than expected gain in jobs is a breath of fresh air amid in an otherwise dismal period for economic data in the U.S. and abroad.
Employment rose in professional and business services, food services and drinking places, and manufacturing. Within durable goods, the motor vehicles and parts industry had fewer seasonal layoffs than is typical for July. Employment in other major industries, including mining and logging, construction, retail trade, transportation and warehousing, financial activities, and government, showed little or no change over the month.
The unemployment rate was essentially unchanged in July at 8.3 percent.
Despite the strong headline number, however, some were skeptical. Economist Thomas Simons at Jefferies said difficulties in seasonal adjustment process boosted manufacturing payrolls. He notes July had the second largest seasonal adjustment factor for the year overall. Also, a decline in household employment, participation rate was "discouraging" and the lowest since June 2011.
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Traders weren't totally blind going into the numbers, since an earlier ADP report this week pointed to better than expected results in private employment. Regardless, the higher than expected gain in jobs is a breath of fresh air amid in an otherwise dismal period for economic data in the U.S. and abroad.
Employment rose in professional and business services, food services and drinking places, and manufacturing. Within durable goods, the motor vehicles and parts industry had fewer seasonal layoffs than is typical for July. Employment in other major industries, including mining and logging, construction, retail trade, transportation and warehousing, financial activities, and government, showed little or no change over the month.
The unemployment rate was essentially unchanged in July at 8.3 percent.
Despite the strong headline number, however, some were skeptical. Economist Thomas Simons at Jefferies said difficulties in seasonal adjustment process boosted manufacturing payrolls. He notes July had the second largest seasonal adjustment factor for the year overall. Also, a decline in household employment, participation rate was "discouraging" and the lowest since June 2011.
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