Article

2023-07-07 Economy

Dow pares losses, still plunges over 300 points as hot jobs data stokes rate hike fears

[NYP] Wall Street’s main indexes tumbled on Thursday in a broad selloff after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising interest rates.

The Dow Jones Industrial Average, which had plummeted 500 points earlier, fell 366.38 points, or 1.1%, to 33,922.26. The Nasdaq and S&P 500 each dropped 0.8%.

Private payrolls increased more than expected in June, the ADP National Employment report showed, indicating the labor market remained strong despite growing risks of a recession from higher interest rates.

Another survey showed the number of Americans filing new claims for unemployment benefits increased moderately last week.

"We don’t see any softening in the labor market," said Brad McMillan, chief investment officer for Commonwealth Financial Network. "The Fed doesn’t have to worry about the jobs market. When you look at their mandate, they have no reason not to keep hiking and to keep hiking for a while."

Posted by Besoeker 2023-07-07 01:54|| || Front Page|| [15 views ] Top

#1 While the ADP report is important, it is incomplete. They are one of three large payroll providers (Hewitt and PayChex are the others), and so you only see a partial picture here.

The Labor Department statistics released this morning showed a gain of only 209,000. And one of the biggest gainers there was government hiring.

So what is going on? Still somewhat murky. But the job market does remain strong, no matter whose statistics you read.

Posted by Tom 2023-07-07 10:46|| 2023-07-07 10:46|| Front Page Top

#2 Dire financial consequences for numbers that the Biden folks are surely juicing.

Posted by Super Hose 2023-07-07 12:45|| 2023-07-07 12:45|| Front Page Top

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