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US stocks rose after a disappointing job gains report released in May, which further encouraged the Fed to move towards a more flexible monetary policy.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The S & P 500 (^ GSPC) increased by 1.27%, or 36.15 points, to 13:12. AND. The Dow (DJI) rose 1.15%, or 295.27 points, and surpassed 26,000 for the first time since May 10th. The Nasdaq (^ IXIC) are up 1.8%, or 136.57 points. "data-reactid =" 16 "> The S & P 500 (^ GSPC) gained 1.27%, or 36.15 points, at 13:12 ET The Dow (^ DJI) rose 1.15% %, or 295.27 points, and exceeded 26,000 for the first time since May 10. The Nasdaq (^ IXIC) rose 1.8%, or 136.57 points.
<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Treasuries have fallen across the curve , with the yields on the 10-year note (^ TNX) down 4.1 basis points to 2.072%. The three-month yield was down 4.1 basis points to 2.272% and the two-year yield was down 4.8 basis points to 1.833%. The US dollar index (DX-Y.NYBThe jobs report dropped below 97 after the jobs report was released. "data-reactid =" 17 "> Treasury bond yields declined across the curve, as the 10-year note yield (^ TNX) declined 4.1 basis points to 2.072 The return was down 4.1 basis points to 2.272% and the two-year yield fell 4.8 basis points to 1.833% .The US dollar index (DX-Y.NYB) fell below the 97 mark after the jobs report.
According to the Bureau of Labor Statistics, the US economy increased only 75,000 jobs in May. According to estimates by Bloomberg, this figure was below expectations for 175,000 non-farm additions.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[Readmore:[Readmore:[Lirelasuite:[Readmore:US economy adds 75,000 disappointing jobs in May]"data-reactid =" 19 ">[Readmore:[Readmore:[Lirelasuite:[Readmore:US economy adds 75,000 disappointing jobs in May]
Payroll figures for the previous two months have also been revised downward. The change in the non-agricultural payroll in April was reduced from 263,000 to 224,000, and the new March figure was reduced to 153,000, compared to 189,000 previously. As a result of the revisions, employment gains averaged 151,000 per month over the last three months.
The unemployment rate remained at 3.6%, its lowest level in 49 years, which is consistent with consensus estimates. Participation in the labor market also remained unchanged at 62.8%.
Average hourly earnings remained at 0.2% from one month to the next, compared with a slight increase to 0.3% of the pace of expected gains. Average hourly wages rose 3.1% over last year, while consensus economists were expecting a rate of 3.2% from April to May.
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The" official "report of the BLS has arrived on the heels ADP Research Institute, Wednesday, on the unexpected weakness of the private workforce. & Nbsp;Private payroll additions& nbsp; only 27,000 people in May, reported ADP, the slowest pace of progress since 2010. "data-reactid =" 23 "> The" official "report of the BLS was released in the wake of unexpectedly low wages published by ADP Research Institute on Wednesday private payroll rose by only 27,000 in May, according to ADP, the slowest pace of growth since 2010.
<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Recent data weaker than expected in the domestic economy – including a & nbsp;Purchasing Managers Index& nbsp; at its lowest level in three years in May and its fifth month of decline in the number of & nbsp;home sales& nbsp; In six months, many investors are questioning the intensification of trade tensions for the Fed to intervene to support the current economic growth. According to many economists, the disappointing number of payrolls added on Friday fueled these claims. "Data-reactid =" 24 "> Recent data weaker than expected on the national economy – including an index of purchasing managers at its lowest level in three years in a month May and a fifth month of declining housing sales in six months, associated with escalating trade tensions, many investors speculate that the Fed will intervene to contribute to the continuation of current economic growth. .
"This is the type of reading the doves will really access, because it supports the argument for lower rates beyond political or trade issues, which has never been part of the mandate of the Fed ", Mike Loewengart, Vice President of Investment Strategy for E-Trade Financial, writes in an email. "That said, our historically low unemployment rate has not moved and, even though this figure has remained low, we continue to create jobs, which confirms the assumption that the economy is The Fed will have to follow a very thin line. "
Earlier this week, Federal Reserve Governor Lael Brainard said that although she does not give too much weight to a data point in the US economy, she will be watching the jobs report closely. Friday.
<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" I look very carefully at the payroll number that comes out at the end of the month. I do not tend to take too much signal from a particular data point. I like to put it in context and watch for several months and watch this trend line, "said Brainard & nbsp;Brian Cheung from Yahoo Finance. "But I will pay particular attention to the payroll number on Friday." "Data-reactid =" 27 ">" I'm looking very carefully at the payroll number published at the end of the month. Brainard told Yahoo Finance's Brian Cheung, "but I'm going to pay close attention to the trends curve." number on Friday.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "From Friday morning, the markets were in progress 30.8% probability of a reduction in rates by the June meeting of the Fed, up about 8 percentage points in the minutes issued after the release of the report on The Bureau of Labor Statistics' employment The market was forecasting a reduction of at least a 98.5% rate at the December meeting of the central bank as of Friday afternoon, according to & nbsp;FedWatch tool closely monitored by the CME group. "data-reactid =" 28 "> As early as Friday morning, the markets were banking on a 30.8% probability of reducing rates by the June meeting of the Fed, up about 8 points percentage in the minutes following the Bureau of Labor Statistics employment report Markets were expecting 98.5% of at least a rate cut at the December central bank meeting Friday afternoon, according to the FedWatch close monitoring tool of the CME group.
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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck"data-reactid =" 30 ">Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck
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