Poor job results in the US economy negatively affected indexes

Poor job results in the US economy negatively affected indexes

38
0
SHARE

On Friday, labor market outcomes showed a first contraction in new jobs for the US economy in seven years. This affected most of the shares that closed at lower levels. The Dow Jones industrial average index made a correction of just a few points and closed down to 22,773.67 points, while Chevron and Boeing finished the most with their values.

The S & P 500 declined by 0.11% to 2549.33 points, with the decline mainly influenced by the telecommunications sector. The index ended its longest winning series in 4 years with a total of 8 consecutive winning sessions. For the first time since 1997, the index has also recorded six consecutive record closing times on a daily basis. A record rise in Friday’s session is the NASDAQ Composite, which peaked at 6,590.18 points, recording a 0.07% increase for the day.

The US economy has lost 33,000 jobs in September, and the main cause of the negative results are the two major hurricanes that hit the southern coast of the states. Labor markets have collapsed for the first time since 2010, and Reuters’ preliminary polls among leading economists have forecast a growth of 90,000 jobs. Despite the poor overall results, average hourly earnings posted a surprising increase of 2.9%.

Hourly pay is closely monitored by investors looking for inflation indications. The unemployment rate dropped to a 16-year low as it reached 4.2%, which is also an encouraging factor.

Treasury bills surged after the announcement of reports on the US economy. Up to 2,362% rose to 10-year bonds and 2-year bonds peaked for the first time since 2008, rising to 1.51%. Wall Street’s moods have recently been determined by strong economic data and the hope for a new tax reform.

Production and non-production data published earlier last week reached multi-year highs. Parliament has adopted a budget of 4.1 trillion dollar, which was a first step towards adopting a tax reform. The dollar reacted to an increase in payrolls, but declined after the news that North Korea has prepared a new test for its long-range missiles.

SHARE
Previous articleTeachable Machine: learn the basics of machine learning in a fun way
Next articleEnergy Market Stay Range Bound, Looking for Direction
Brayden Fortin is a American with numerous years of investment experience in the American Equity Market and in the Global Commodity Market. He has a B.Com degree from a well respected Canadian university and has experience working in the wealth management industry. He is interested in delving into numbers to analyze companies and markets. He won a couple of international strategy simulation competitions involving decision making through numerical analysis, and also scored in the top 50 on the Bloomberg Aptitude Test (out of nearly 200,000 test takers).

NO COMMENTS

LEAVE A REPLY