Latest news with #nonfarmpayrolls
Bloomberg
8 hours ago
- Business
- Bloomberg
A Practical Guide to Fixing the Jobs Data Problem
President Donald Trump started a firestorm over the reliability of US economic data when he fired the head of the Bureau of Labor Statistics following the agency's July nonfarm payrolls report. The report wiped 258,000 jobs that were previously counted in May and June, the largest downward revision in decades outside of the Covid pandemic. A miss that big was guaranteed to draw scrutiny. The BLS's jobs and inflation data are arguably the most important numbers the government compiles because the Federal Reserve relies on them to conduct monetary policy. The Fed has long been criticized for reacting too slowly to economic developments, an inevitable consequence of relying on lagging government data. Now the Fed and BLS are likely to face even more pressure to catch up.
Free Malaysia Today
5 days ago
- Business
- Free Malaysia Today
Dollar holds losses on US economy concerns, Fed appointments
Initial jobless claims in the US came under scrutiny after disappointing nonfarm payrolls last week triggered a slide in the dollar. (Unsplash pic) TOKYO : The dollar remained lower against major peers on Thursday, as expectations of Federal Reserve rate cuts grew and concerns swirled about partisanship creeping into key US institutions. Initial jobless claims in the US are under scrutiny after last week's disappointing nonfarm payrolls, which triggered a slide in the greenback. Meanwhile, the euro found support ahead of anticipated talks next week to end the war between Russia and Ukraine. Last week, President Donald Trump fired the official responsible for the labour data he did not like, and focus is centring on his nomination to fill a coming vacancy on the Fed's Board of Governors and candidates for the next chair of the central bank. 'All those things suggest that we're seeing those political risks around the US dollar increase, and on top of that you've got the weak data coming through,' said Tony Sycamore, a market analyst at IG. Any progress in ending the war in Ukraine 'is going to be a positive driver of the euro,' he added. The dollar index, which measures the greenback against a basket of major peers, edged up 0.1% to 98.259 in early trade in Asia, after a 0.6% slide in the previous session. The US currency was little changed at 147.36 yen. The euro stood at US$1.1654, down almost 0.1% after a 0.7% jump previously. The US Labor Department is expected to report that initial claims for unemployment benefits likely rose by 3,000 to 221,000 for the week ended Aug 2. Continued jobless claims for the week that ended July 26 are expected to increase slightly. Data last Friday showed US employment growth was weaker than expected in July while the nonfarm payrolls count for the prior two months was revised down considerably, suggesting a sharp deterioration in labour market conditions. Fed funds futures traders are now pricing in a 94% probability of a 25 basis point cut at the Fed's September meeting, up from 48% a week ago, according to the CME Group's FedWatch Tool. In total, traders see 60.5 basis points in cuts this year. Trump could meet Russian leader Vladimir Putin as soon as next week, a White House official said on Wednesday, as the US kept up pressure on Moscow to end the war in Ukraine. The president said on Tuesday he would decide on a nominee to replace outgoing Fed Governor Adriana Kugler by the end of the week and had separately narrowed the possible replacements for Fed Chair Jerome Powell to a short list of four. Sterling was steady at US$1.33505. The Australian dollar was little changed at US$0.65. Bitcoin edged 0.1% lower to US$115,038.79.
Globe and Mail
04-08-2025
- Business
- Globe and Mail
Disney & 3 Other Stocks With Strong Interest Coverage to Buy Now
The recent market pullback, triggered by fresh tariffs and a stark slowdown in job growth, has shaken investor confidence. With July nonfarm payrolls rising by just 73,000, far below expectations, and June's numbers revised drastically downward, the labor market appears weaker than initially thought. This deteriorating backdrop, combined with renewed trade tensions, has not only fueled expectations of a Federal Reserve rate cut but also created a wave of risk aversion, sending major indices sharply lower. In such uncertain conditions, relying solely on stock price movements without understanding the company's fundamentals can cause investors to lose money. Investors must carefully review a company's financial health to make informed decisions, especially in today's unpredictable market. While sales and earnings are often the go-to metrics, they can sometimes be misleading and may not show whether a company has the financial strength to cover its obligations. This is where the coverage ratio holds the key — a higher ratio signals that a company is more capable of meeting its financial commitments. The Walt Disney Company DIS, BJ's Wholesale Club Holdings, Inc. BJ, Ralph Lauren Corporation RL and McKesson Corporation MCK have impressive interest coverage ratios. Why Interest Coverage Ratio? The interest coverage ratio is used to determine how effectively a company can pay interest charges on its debt. Debt, which is crucial to financing operations for the majority of companies, comes at a cost called interest. Interest expense has a direct bearing on the profitability of a company. The company's creditworthiness depends on how effectively it meets its interest obligations. Therefore, the interest coverage ratio is one of the important criteria to factor in before making any investment decision. Interest Coverage Ratio = Earnings before Interest & Taxes (EBIT) divided by Interest Expense. The interest coverage ratio suggests how many times the interest could be paid from earnings and gauges the margin of safety a firm has for paying interest. An interest coverage ratio lower than 1 suggests that the company is unable to fulfill its interest obligations and could default on repaying debt. A company capable of generating earnings well above its interest expense can withstand financial hardships. One should also track the company's past performance to determine whether the interest coverage ratio has improved or worsened over time. The Winning Strategy Apart from having an interest coverage ratio that is more than the industry average, adding a favorable Zacks Rank and a VGM Score of A or B to your search criteria should lead to better results. Interest coverage ratio greater than X-Industry Median Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher. 5-Year Historical EPS Growth (%) greater than X-Industry Median: Stocks with a strong EPS growth history. Projected EPS Growth (%) greater than X-Industry Median: This is the projected EPS growth over the next three to five years. This shows that the stock has near-term earnings growth potential. Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable. Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment. VGM Score of less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential. Here are four of the nine stocks that qualified the screening: Walt Disney, an iconic name in entertainment and media, carries a Zacks Rank #2 and has a VGM Score of B. The company has a trailing four-quarter earnings surprise of 16.4%, on average. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Walt Disney's current financial-year sales and EPS calls for growth of 4% and 16.3%, respectively, from the year-ago period. The stock has rallied 32.9% in the past year. BJ's Wholesale Club, one of the leading operators of membership warehouse clubs, carries a Zacks Rank #2 and has a VGM Score of B. BJ delivered a trailing four-quarter earnings surprise of 17.7%, on average. The Zacks Consensus Estimate for BJ's Wholesale Club's current financial-year sales and EPS suggests growth of 5.5% and 6.2%, respectively, from a year ago. The stock has risen 29.1% in the past year. Ralph Lauren, a global leader in the design, marketing and distribution of luxury lifestyle products, carries a Zacks Rank #2 and has a VGM Score of B. The company has a trailing four-quarter earnings surprise of 9%, on average. The Zacks Consensus Estimate for Ralph Lauren's current financial-year sales and EPS calls for growth of 3.8% and 11.8%, respectively, from the year-ago period. The stock has advanced 83.9% in the past year. McKesson Corporation, a diversified healthcare services leader, carries a Zacks Rank #2 with a VGM score of A. The company has a trailing four-quarter earnings surprise of 3.9%, on average. The Zacks Consensus Estimate for McKesson Corporation's current financial-year sales and EPS implies growth of 13.1% and 12.7%, respectively, from the year-ago period. The stock has risen 14% in the past year. You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and back test them first before taking the investment plunge. The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today. Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. Disclosure: Performance information for Zacks' portfolios and strategies is available at: Zacks Names #1 Semiconductor Stock This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report McKesson Corporation (MCK): Free Stock Analysis Report BJ's Wholesale Club Holdings, Inc. (BJ): Free Stock Analysis Report Ralph Lauren Corporation (RL): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report
Bloomberg
01-08-2025
- Business
- Bloomberg
Biggest Job Revisions Since 2020 Expose Pitfall of Economic Data
The latest employment report showed the steepest downward revisions to US jobs growth since the pandemic, offering a dramatically different picture of the labor market in recent months. The Bureau of Labor Statistics marked down nonfarm payrolls by nearly 260,000 in May and June combined, according to the July employment report released Friday. The two-month revision was due in part to seasonal adjustment issues but also what economists say is a broader trend of low response rates.
Wall Street Journal
01-08-2025
- Business
- Wall Street Journal
Ahead of the Jobs Report, Here's How Unemployment Has Trended in Recent Years
Today's jobs report is expected to show the unemployment rate inched higher in July to 4.2%, from 4.1% in June. Ahead of the Labor Department's nonfarm payrolls, take a look at how unemployment has tracked in recent years:
