Job growth in the United States exceeded expectations in May.
US employers added a net 175,000 names to payrolls, and the
unemployment rate ticked up to 7.6%. The participation rate was
unchanged at 63.4%.
Only transportation, non-durable manufacturing, and the public
sector shed workers in May. Leisure, retail, and professional
business services all added tens of thousands of workers.
One dark spot in the report was previous months' revisions. March's
report was revised up by 4,000 and April's was revised down 16,000.
This report could get a mixed reaction from markets. Since it
wasn't stellar, it doesn't add fuel to fears of the Fed slowing
down quantitative easing, but it did beat expectations, so it might
possibly spur gains in stocks.
Futures were lower leading up to the jobs report, reflecting
bearish expectations stemming from the disappointing ADP private
sector employment report and a ho-hum count of initial jobless
claims. Before the opening bell,
(INDEXDJX:.DJI) futures were down 0.07% at 15,026 this morning
before the opening bell.
(INDEXSP:.INX) futures also fell 0.02% to 1,622.40, suggesting a
third straight week of declines on the index. Future contracts on
(INDEXNASDAQ:.IXIC) index climbed 0.08% to 2,947.25.
Treasuries also advanced before the jobs report. The 10-year yield
fell 3 basis points to 2.05%. Yields are down 7 basis points since
The yen to dollar ratio rose the fastest since 2010 today to 95.7
to the dollar. The
(INDEXNIKKEI:.NI225) fell 0.21% overnight, even as a public pension
fund confirmed that it will cut its allocation to Japanese
government bonds in favor of stocks. Japanese equities are now down
20% from their 52-week high just weeks ago, officially in a bear
European stocks were also mixed overnight. Germany's import demand
rose, in April, as did exports. Imports are up 5.2% year-over-year
and exports are up 8.5%. Also in April, industrial production in
the country rose 1.8% month-over month.
) analysts cut their profit estimates for
(KRX:05930), sending shares down 6.2%, erasing $12 billion of
market value. The analysts expressed concerns that its smartphone
business, which accounts for 70% of profits, will not grow as fast
as it has in the past. The new Galaxy S4 smartphone exhibited weak
demand in key markets, and orders have been cut by as much as a
third. The Korean gadget conglomerate was also shaken by reports
) might allow iPhone users to trade in older models for a discount
on new ones. Apple might confirm this, as well as updates to its
product lines at Monday's developer conference.
Fresh after revelations that the National Security Administration
collects phone call metadata on millions of
) customers, the
newspaper also uncovered another undisclosed data mining program
called PRISM, which allows the government to collect data on users
of popular Internet services including
). A Google spokesman denied the newspaper's claims.
(WMT) is holding its annual shareholder meeting today, where it
will take a drubbing from investors over the Mexican bribery