Latest news with #employmentreport
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
Most Jobs Growth Came From Health Care, Hospitality, Home-Aide Roles
The lion's share of new jobs created in May came from just three sectors, according to the Labor Department's monthly employment report. Health care: 62,000 new jobs Social assistance: 16,000 new jobs Leisure and hospitality: 48,000 new jobs. Hiring meanwhile was broadly flat in most other industries, and federal government employment declined—it's down by 59,000 since January. Demand for temporary help workers dropped too last month, a sign companies are turning more cautious on hiring. Analysts noted that the narrow breadth of job gains in May suggests slowing employment in key cyclical sectors of the economy.
Globe and Mail
4 days ago
- Business
- Globe and Mail
Stocks Finish Sharply Higher on a Resilient US Labor Market
The S&P 500 Index ($SPX) (SPY) Friday closed up +1.03%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +1.05%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.99%. June E-mini S&P futures (ESM25) are up +1.04%, and June E-mini Nasdaq futures (NQM25) are up +0.99%. Stock indexes rallied sharply on Friday, with the S&P 500 posting a 3-1/2 month high and the Dow Jones Industrials posting a 3-month high. Stocks settled sharply higher after Friday's better-than-expected US May employment report alleviated concerns of an economic slowdown. Also, the resumption of US-China trade talks gave stocks a boost after President Trump said that US and Chinese negotiators will resume trade talks on Monday in London. Tesla rose more than +3% Friday after plunging -14% on Thursday when President Trump proposed ending government contracts and subsidies for Elon Musk's companies. Shares of Tesla recovered Friday when Musk, who triggered the public feud by criticizing President Trump's tax bill, signaled he's keen to dial down the hostility. US May nonfarm payrolls rose +139,000, stronger than expectations of +126,000, although Apr nonfarm payrolls were revised lower to +147,000 from the previously reported +177,000. The May unemployment rate remained unchanged at 4.2%, right on expectations. US May average hourly earnings rose +0.4% m/m and +3.9% y/y, stronger than expectations of +0.3% m/m and +3.7% y/y. US Apr consumer credit rose +$17.873 billion to a 4-month high, better than expectations of +$10.000 billion. Fed comments on Friday were mixed for stocks and bonds. On the bearish side, Cleveland Fed President Hammack said she'd rather wait for further clarity on the economic impact of a variety of policy changes before adjusting interest rates, and now "is not a good time to be preemptive." Conversely, Philadelphia Fed President Harker favors the Fed waiting before cutting rates and said, "I could see in the second half of the year, if things resolve themselves, and we start to see more clarity, and we continue to see inflation coming down to 2%, I could definitely see a rate cut in the offing." The markets are discounting the chances at 0% for a -25 bp rate cut at the next FOMC meeting on June 17-18. Overseas stock markets on Friday settled higher. The Euro Stoxx 50 closed up +0.36%. China's Shanghai Composite rose to a 2-week high and closed up +0.04%. Japan's Nikkei Stock 225 closed up +0.50%. Interest Rates September 10-year T-notes (ZNU2 5) Friday closed down -28.5 ticks. The 10-year T-note yield rose +11.9 bp to 4.510%. Sep T-notes on Friday gave up an early advance and fell to a 1-week low, and the 10-year T-note yield rose to a 1-week high of 4.512%. T-notes retreated Friday on the hawkish US May payroll report that showed a larger-than-expected increase in nonfarm payrolls and a larger-than-expected increase in average hourly earnings. T-notes added to their losses Friday on hawkish comments from Cleveland Fed President Hammack, who said she'd rather wait before adjusting interest rates. T-notes on Friday initially posted modest gains on carryover strength from a rally in 10-year German bunds. European government bond yields on Friday were mixed. The 10-year German bund yield fell -0.7 bp to 2.576%. The 10-year UK gilt yield rose +2.8 bp to 4.644%. Eurozone Q1 GDP was revised higher to +0.6% q/q and +1.5% y/, stronger than expectations of +0.4% q/q and +1.2% y/y. Eurozone Apr retail sales rose +0.1% m/m, weaker than expectations of +0.2% m/m. German Apr industrial production fell -1.4% m/m, weaker than expectations of -1.0% m/m. ECB Governing Council member Stournaras said, "The bar for another ECB rate cut is high, in July and beyond," and the ECB should pause its interest rate cuts to give officials a chance to assess recent shocks, particularly from trade. Swaps are discounting the chances at 27% for a -25 bp rate cut by the ECB at the July 24 policy meeting. US Stock Movers Chip makers moved higher on Friday to boost the broader market. Marvell Technology (MRVL) closed up more than +4%. Also, Analog Devices (ADI), Micron Technology (MU), and ARM Holdings Plc (ARM) closed up more than +2%. In addition, Applied Materials (AMAT), Lam Research (LRCX), KLA Corp (KLAC), Microchip Technology (MCHP), ON Semiconductor (ON), NXP Semiconductors NV (NXPI), Texas Instruments (TXN), and Qualcomm (QCOM) closed up more than +1%. Strength in the Magnificent Seven stocks was a positive factor for the overall market. Alphabet (GOOGL) closed up more than +3%, and (AMZN) closed up more than +2%. Also, Apple (AAPL), Nvidia (NVDA), and Meta Platforms (META) closed up more than +1%. In addition, Microsoft (MSFT) closed up +0.58%. Energy stocks and energy service providers moved higher on Friday after the price of WTI crude rose more than +1% to a 1-1/2 month high. APA Corp (APA) closed up more than +3%. Also, Chevron (CVX), Exxon Mobil (XOM), Haliburton (HAL), Baker Hughes (BKR), ConocoPhillips (COP), Devon Energy (DVN), Diamondback Energy (FANG), and Schlumberger (SLB) closed up more than +2%. Tesla (TSLA) closed up more than +3% after CEO Musk signaled he would cool tensions with President Trump following Thursday's dispute that sank Tesla stock by more than -14% when Musk called for Trump's impeachment and President Trump proposed ending government contracts and subsidies for Elon Musk's companies. QXO Inc (QXO) closed up more than +13% after Wolfe Research initiated coverage on the stock with a recommendation of outperform and a price target of $44. Quanex Building Products (NX) closed up more than +10% after reporting Q2 net sales of $452.5 million, stronger than the consensus of $439.3 million. Sarepta Therapeutics (SRPT) closed up more than +9% after Scotiabank upgraded the stock to sector outperform from sector perform with a price target of $80. Lululemon Athletica (LULU) closed down more than -19% to lead losers in the S&P 500 and Nasdaq 100 after cutting its full-year EPS estimate to $14.58-$14.78 from a previous estimate of $14.95-$15.15. Docusign (DOCU) closed down more than -18% after reporting Q1 billings of $739.6 million, below the consensus of $746.4 billion, and cutting its full-year billings forecast to $3.29 billion-$3.34 billion from a previous forecast of $3.30 billion-$3.35 billion, weaker than the consensus of $3.32 billion. Vera Therapeutics (VERA) closed down more than -25% after Japanese rival Otsuka gave results from a trial of its experimental therapy for kidney disease that was better than Vera's data. ServiceTitan (TTAN) closed down more than -6% after reporting a Q1 loss per share of -51 cents, a wider loss than the consensus of -37 cents. Mosaic (MOS) closed down more than -4% after cutting its Q2 phosphates sales volume forecast to 1.5 million to 1.6 million tons from a previous forecast of 1.7 million to 1.9 million tons, well below the consensus of 1.84 million tons. Broadcom (AVGO) closed down more than -4% despite reporting better-than-expected Q2 earnings after analysts' said its future forecast isn't seen as strong enough to extend the stock's recent strength. MercadoLibre (MELI) closed down more than -3% after Citigroup opened a 30-day downside catalyst watch on the stock, citing the potential risk the company is taking to improve pricing and preserve market share. Earnings Reports (6/9/2025) Borr Drilling Ltd (BORR), Calavo Growers Inc (CVGW), Casey's General Stores Inc (CASY), Gencor Industries Inc (GENC), Graham Corp (GHM), Hooker Furnishings Corp (HOFT), Limoneira Co (LMNR), NexPoint Diversified Real Estate Trust (NXDT).
Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
US stocks end mixed as investors eye trade talks, jobs data
Tech stocks pushed the Nasdaq modestly higher, while the S&P 500 ended flat and the Dow closed slightly down. (AP pic) NEW YORK : Wall Street wavered and US Treasury yields dropped on Wednesday as investors monitored US trade negotiations and looked ahead to Friday's critical employment report. Tech pushed the Nasdaq modestly higher, while the S&P 500 ended the session essentially flat and the Dow closed slightly lower. The dollar dipped and gold advanced. 'The big move in rates is providing a little bit of reprieve if not for stocks directly, at least for some of the bigger narratives around why rates were moving higher,' said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. 'There's a bit of relief from the equity markets that there still seems to be an upper range on where rates will go in this kind of environment.' US-European trade talks are progressing, Europe's top negotiator said, noting that the doubling of US metals tariffs, which kicked in on Wednesday, is not helping negotiations. China's curbs on critical mineral exports have distressed global automakers, who said shortages threaten to halt global supply chains. With US President Donald Trump and Chinese President Xi Jinping likely to speak soon, Trump called Xi tough in a social media post and 'extremely hard to make a deal with,' suggesting a swift resolution of trade differences between the world's two largest economies could prove elusive. 'Investors are still confident, or at least as confident as they can be, that the administration is not going to let things get too bad. The low on April 8 is not a place that the administration will return to now,' Mayfield added. 'I don't necessarily think that the TACO (Trump Always Chickens Out) trade is wrong; obviously it's a joke, but there's enough signage that suggests if the administration reverts back to some of their worst tendencies on trade and tariffs, then the market will react in kind,' Mayfield said. On the economic front, payrolls processor ADP reported the US private sector added 37,000 jobs last month, or 69.2% fewer than analysts expect the Labor Department's more comprehensive employment report to show on Friday. Additionally, survey data showed the US services sector slipped into contraction last month, while prices paid – an inflation predictor – hit the highest level since November 2022. The Dow Jones Industrial Average fell 91.90 points, or 0.22%, to 42,427.74, the S&P 500 rose 0.44 points, or 0.01%, to 5,970.81 and the Nasdaq Composite rose 61.53 points, or 0.32%, to 19,460.49. European stocks advanced and Germany's benchmark index touched a record high after Berlin approved a corporate tax relief package, even as survey data showed euro zone business activity stalling and Germany's services sector posted its sharpest contraction in more than two years. MSCI's gauge of stocks across the globe rose 2.85 points, or 0.32%, to 888.75. The pan-European STOXX 600 index rose 0.47%, while Europe's broad FTSEurofirst 300 index rose 9.84 points, or 0.45% Emerging market stocks rose 14.71 points, or 1.27%, to 1,172.84. MSCI's broadest index of Asia-Pacific shares outside Japan closed higher by 1.3% to 618.16, while Japan's Nikkei rose 300.64 points, or 0.80%, to 37,747.45. The dollar dipped across the board as downbeat economic data suggested softening labour market conditions and the services sector dipping into contraction. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.29% to 98.87, with the euro up 0.36% at US$1.1411. Against the Japanese yen, the dollar weakened 0.78% to142.87. Longer-dated US Treasury yields were lower after the softer-than-expected economic data as investors watched for signs of progress in tariff negotiations and looked ahead to the payrolls report. The yield on benchmark US 10-year notes fell 10.1 basis points to 4.359%, from 4.46% late on Tuesday. The 30-year bond yield fell 10.2 basis points to 4.8806% from 4.983% late on Tuesday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 8.6 basis points to 3.871%, from 3.957% late on Tuesday. Crude prices turned lower as US data showed larger-than-expected inventories, adding to supply concerns amid trade tensions and Opec+ output increases. US crude dipped 0.88% to settle at US$62.85 a barrel, while Brent settled at US$64.86 per barrel, down 1.17% on the day. Gold prices gained ground, supported by the soft dollar as investors bided their time for trade deals and employment data. Spot gold rose 0.62% to US$3,372.86 an ounce. US gold futures rose 0.64% to US$3,371.50 an ounce.
Globe and Mail
6 days ago
- Business
- Globe and Mail
U.S. private payrolls growth comes in far below expectations in May
U.S. private payrolls increased far less than expected in May, the ADP National Employment Report showed on Wednesday. Private payrolls increased by only 37,000 jobs last month after a downwardly revised 60,000 rise in April. Economists polled by Reuters had forecast private employment increasing 110,000 following a previously reported gain of 62,000 in April. U.S. job openings rebound in April, but layoffs rise Trump says he will double tariffs on steel and aluminum imports to 50% The ADP report, jointly developed with the Stanford Digital Economy Lab, was published ahead of the more comprehensive employment report for May due to be released on Friday by the U.S. Labour Department's Bureau of Labor Statistics. There is no correlation between the ADP and BLS employment reports. The labour market continues to ease amid economic uncertainty from tariffs. Government data on Tuesday showed there were 1.03 job openings for every unemployed person in April, little changed from March. Private payrolls likely increased by 120,000 jobs in May after advancing 167,000 in April, a Reuters survey showed. Overall non-farm payrolls are estimated to have increased by 130,000 jobs after rising 177,000 in April. The unemployment rate is forecast to be unchanged at 4.2 per cent.
Zawya
6 days ago
- Business
- Zawya
US private payrolls growth slows sharply in May
U.S. private payrolls increased far less than expected in May, the ADP National Employment Report showed on Wednesday. Private payrolls increased by only 37,000 jobs last month after a downwardly revised 60,000 rise in April. Economists polled by Reuters had forecast private employment increasing 110,000 following a previously reported gain of 62,000 in April. The ADP report, jointly developed with the Stanford Digital Economy Lab, was published ahead of the more comprehensive employment report for May due to be released on Friday by the Labor Department's Bureau of Labor Statistics. There is no correlation between the ADP and BLS employment reports. The labor market continues to ease amid economic uncertainty from tariffs. Government data on Tuesday showed there were 1.03 job openings for every unemployed person in April, little changed from March. Private payrolls likely increased by 120,000 jobs in May after advancing 167,000 in April, a Reuters survey showed. Overall nonfarm payrolls are estimated to have increased by 130,000 jobs after rising 177,000 in April. The unemployment rate is forecast to be unchanged at 4.2%. (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)
