Chillin' out till it needs to be funded
After the rash of electronic hiccups hitting RBS results and the Big Board, Wall Street got the reprieve it needed to continue the celebrations when the Jobs report before the open posted a 172000 improvement in Private non farm payrolls , bang in line with the ADP Payrolls report for a change. Non Farm Payrolls data composite was also 163,000 and that means the tight government ship is not sloughing off jobs which would have otherwise appeared here or in the Job Cuts report yesterday
As the expected number was just a 100K the report is likely to entice more buying even as Facebook enters the sub $20 era, still faring much better than Electronic Arts and Zynga while Linked In remains the only digital IPO with a squeaky clean record. Job cuts announced at many of the bigger economy movers factor in late in the DOL report (Bureau of Labor Statistics) counted when the actual cuts happen.
Unemployment rose aas expected to 8.3% but as the number of Jobs added is more than the 150,000 entering the labour population, there is definitely cause for planning a better future with this report.
Asians maintained their lead in the unemployed with only 6.7% reporting unemployed status, and thankfully the unemployment rate for Hispanics finally slipped a little lower at 10.3 some uptick in disposable income is intact as hourly ages ticked up by 0.1%
The Labor force counting in employment stayed above earlier abysmal levels but is static at 63.6% Only 852000 of the marginally atttached workers ( not looked for 4 weeks) said they were discouraged about job prospects while almost another 2 mln cited other responsibilities In line with the spending surge, food places showed the most uptick in services hiring at 25,000 and durable goods plants/offices took in most of the 25,000 increase, most of it bought in by lower than expected layoffs in the Auto industry in July (Seasonally adjusted, 13000)
Services accounted for 148,000 of the 172,000 additions including Hotels and Restaurants, Healthcare, Education, Wholesale and Retail Trade and Professional Services . The Diffusion index for the month reports at more than 56% (includes half reporting unchanged hiring and all of increasing hiring responses)