Stocks Higher On Better Job Loss Number
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Stocks are stronger today after a better than expected job loss number and the first drop in the unemployment rate since April 2008. The data suggests the worst is over for U.S. job losses.
Data from the Department of Labor showed that the U.S. lost 247,000 jobs in July, which is down from the 443,000 jobs lost in June and better than the consensus of 325,000 job losses for the month. The July drop was the smallest since September 2008. In addition, the unemployment rate declined from 9.5% to 9.4%, the first drop since April 2008.
At 10:30AM the Dow was up 100 points, the Nasdaq Up 20 and the S&P 500 rose 10.
The U-6 unemployment number, which includes unemployed, plus all marginally attached workers, plus
total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers, dropped to a seasonally adjusted 16.3% in July from 16.5% in June. It was at 10.4% in July 2008.
Analysts at Deutsche Bank said the most important news in the report was the lengthening in the nonfarm workweek from 33.0 to 33.1 hours that was led by a 0.3 rise in the factory workweek to 39.8 hours. The firm notes, "the factory workweek is a leading indicator of the economy and the inventory cycle, and this series has to continue to trend higher for us to get the business-led recovery that we are forecasting."
Data from the Department of Labor showed that the U.S. lost 247,000 jobs in July, which is down from the 443,000 jobs lost in June and better than the consensus of 325,000 job losses for the month. The July drop was the smallest since September 2008. In addition, the unemployment rate declined from 9.5% to 9.4%, the first drop since April 2008.
At 10:30AM the Dow was up 100 points, the Nasdaq Up 20 and the S&P 500 rose 10.
The U-6 unemployment number, which includes unemployed, plus all marginally attached workers, plus
total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers, dropped to a seasonally adjusted 16.3% in July from 16.5% in June. It was at 10.4% in July 2008.
Analysts at Deutsche Bank said the most important news in the report was the lengthening in the nonfarm workweek from 33.0 to 33.1 hours that was led by a 0.3 rise in the factory workweek to 39.8 hours. The firm notes, "the factory workweek is a leading indicator of the economy and the inventory cycle, and this series has to continue to trend higher for us to get the business-led recovery that we are forecasting."
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