Latest news with #ElyseAusenbaugh
Yahoo
02-05-2025
- Business
- Yahoo
Employers added 177,000 jobs in April, topping analyst forecasts
Employers across the U.S. added 177,000 jobs in April, new federal data shows, a sign the labor market is still humming despite ongoing economic uncertainty caused by the Trump administration's trade policies. The numbers Job growth was stronger than expected in April, the Labor Department said Friday in its monthly employment report. Payroll gains exceeded economist forecasts of 135,000 last month, according to financial data firm FactSet. The nation's unemployment rate held steady at 4.2%, matching forecasts from analysts polled by FactSet. What it means The data suggests the labor market remains healthy despite rising concerns about how the Trump administration's tariff policies will impact economic activity. Health care companies, along with the transportation and warehousing sector, saw the largest gains in employment last month, adding 51,000 and 29,000 jobs, respectively. Federal employment declined by 9,000, up from 4,000 in March. Government layoffs have risen in recent months because of cuts by the Department of Government Efficiency, or DOGE, which the Trump administration touts as a cost-saving effort. "April may have been the last month when we didn't see the aggregate impact of trade war 2.0, DOGE job cuts and tight immigration policy. But look closely enough and there are hints, like the slight decline in manufacturing payrolls and another drop in federal government jobs," Elyse Ausenbaugh, head of investment strategy at J.P. Morgan Wealth Management, said in an email. Although the latest employment numbers suggest a steady job market, government data this week showed that more Americans are filing for unemployment benefits as layoffs mount. Jobless claims increased 18,000 to 241,000 for the week ending April 26, the highest level since mid-February, according to Oxford Economics. "Continued claims are more volatile week to week, but remain elevated, signaling that workers who lose their job are facing challenges in finding new employment," Nancy Vanden Houten, lead U.S. economist at Oxford Economics, said in a research note. In another important snapshot of the economy this week, the nation's gross domestic product shrank 0.3% in the first three months of the year, down from growth of 2.4% in the previous quarter. The main reason for the sharp decline was the rush by consumers and businesses to order imported goods ahead of tariffs taking effect (Imports reduce GDP, while exports increase it.) The solid job gains in April increase the odds that the Federal Reserve will keep its benchmark interest rate steady when policy makers meet next week on May 6-7. "The healthy 177,000 rise in non-farm payrolls in April and unchanged unemployment rate will reassure the Fed that there is no need to be hasty in lowering interest rates when it meets next week," Bradley Saunders, North America economist with Capital Economics, told investors in a report. Mike Waltz leaving post as Trump's national security adviser | Special Report Extended interview: DHS Secretary Kristi Noem on deportations involving children and more Jury selection in Sean "Diddy" Combs trial set to begin next week after he rejected plea deal
USA Today
09-03-2025
- Business
- USA Today
Stock market rises but posts weekly loss. Jobs report keeps Fed sidelined. Eyes on tariffs
Hear this story U.S. stocks closed higher despite fewer-than-expected jobs added in February and an unexpected uptick in the unemployment rate. Nonfarm payrolls increased by 151,000 jobs in February, less than the consensus forecast of 170,000 from economists polled by Dow Jones. The unemployment rate edged up a tenth to 4.1%, above expectations for the rate to remain steady at 4.0%. The broad S&P 500 index closed up 0.55%, or 31.68 points, to 5,770.20; the blue-chip Dow edged up 0.52%, or 222.64 points, to 42,801.72; and the tech-heavy Nasdaq rose 0.7%, or126.96 points, to 18,196.22. The benchmark 10-year yield rose to 4.309%. The data were not as strong as expected, but economists don't think it moves the needle for the Federal Reserve in deciding whether it should continue to lower rates later this year. "The February payrolls data wasn't soft enough to change the Fed's calculus, but we are eager to hear how they are thinking about the bigger picture," said Elyse Ausenbaugh, head of investment strategy at J.P. Morgan Wealth Management. "Recently, there have been a handful of data points pointing towards a growth slowdown, and we think the Fed's bias is still tilted towards easing." Need a break? Play the USA TODAY Daily Crossword Puzzle. Recent data that suggested economic slowing include declines in consumer confidence and households struggling to spend beyond necessities. Fed Chair Jerome Powell reiterated at the U.S. Monetary Policy Forum that he was in no hurry to move rates as the Fed seeks more clarity on Trump's policies. Stock gains on Friday were limited due to the uncertain tariff picture. President Donald Trump's back-and-forth rhetoric on tariffs is creating uncertainty and anxiety, investors say. This week, alone, he slapped a 25% tariff on Canadian and Mexican goods and an additional 10% tax on Chinese goods only to walk some of that back in bits and pieces later. First, he exempted the auto sector for a month from the 25% levy and then expanded that to everything covered under the United States–Mexico–Canada Agreement. "Uncertainty about the US' trade policy may keep investors guessing, with Trump's reciprocal tariffs for now set to come into effect in early-April as well," said Diana Iovanel, senior economist in the Global Markets team at Capital Economics. Trump's whiplash so far has pushed the three major U.S. stock indexes lower this week, with the S&P 500 posting its worst week since September. The Nasdaq fell into correction territory on Thursday, meaning it closed at least 10% off its all-time high. Tariffs and inflation Treasury Secretary Scott Bessent continues to say he doesn't believe tariffs will add much to inflation. In an interview before the jobs report, he said on CNBC that tariffs would lead to a 'one-time price adjustment' rather than long-term inflation. Bessent also said the administration was 'not getting much credit' for areas where costs have fallen since Trump's inauguration, such as oil prices and mortgage rates. He also acknowledged the economy may be weakening a bit, but that's an expected adjustment. 'Could we be seeing that this economy that we inherited starting to roll a bit? Sure," he said. "And look, there's going to be a natural adjustment as we move away from public spending to private spending." Corporate news Broadcom shares jumped 8.64% after the chipmaker reported a surge in AI revenue for last quarter. Earnings beat forecasts, too. Walgreens agreed to go private in a deal with private equity firm Sycamore Partners in a deal with an equity value of around $10 billion. Sycamore will pay $11.45 per share in cash for the drugstore chain and another possible $3 more per share in the future from sales of Walgreens' primary-care businesses, including Village Medical, Summit Health and CityMD. Walgreens shares rose 7.45%. Hewlett Packard Enterprise said it will cut about 5% of its global workforce and warned tariffs would weigh on its annual profit. Shares dropped to the lowest level in about a year and closed down 11.97%. Gap said sales were stronger than expected during the holiday quarter. The stock rallied 18.66%. Costco's quarterly revenue missed expectations, but growth in same-store sales was higher-than-expected. Shares fell 6.07%. Cryptocurrency Trump signed an executive order on Thursday to create a strategic bitcoin reserve funded exclusively with bitcoin seized in criminal and civil forfeiture cases, White House crypto and artificial intelligence czar David Sacks wrote in a post on X. The executive order also creates a U.S. digital asset stockpile of other confiscated crypto, managed by the Treasury Department. Bitcoin was last down 3.75% at $86,592.72, dropping back below the key, round level of $90,000. (This story was updated with new information.) Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
