Posted on 07/08/2011 5:49:32 AM PDT by tobyhill
Thanks for including this information.
From the NYSE Mid-Day Update:
NYSE MAC DESK MID-DAY MARKET UPDATE
DOW 12,605(-114 points), S&P500 1338(-14 points), Crude $96.31/barrel (-2.36)
MARKET DRIVERS: A forearm shiver in the form of a dismal Non-Farm Payroll report hit the market this morning, surprising just about everyone on just how bad it was.
• The Labor Department said that U.S. employers added 18,000 workers in June, the fewest in 9 months and well short of consensus estimate of between 105,000 and 125,000.
• The unemployment rate in the U.S. climbed to 9.2%
• Inventories at U.S. Wholesalers rose 1.8% in May, more than forecast, led by the biggest jump in auto stockpiles in five years
• Statistics Canada said employment rose by 28,400 in June exceeding the 15,000 median estimates. Unemployment remained at 7.4%
From IHS Global Insight:
U.S. Economy - Data Commentary
Employment Report
The June employment report was much worse than expected, showing only 18,000 jobs created, and a higher unemployment rate. It shows the soft patch getting worse, not better.
- The Bureau of Labor Statistics reported that June payrolls rose just 18,000, much worse than expected, and below the downwardly revised 25,000 increase in May.
- April and May payrolls were revised down by a combined 44,000.
- Private payrolls added 57,000, their weakest month since May of last year.
- Government employment fell 39,000.
- The unemployment rate rose to 9.2%, from 9.1%.
- The workweek contracted, and average hourly earnings were flat, so total payrolls fell.
- This report shows the soft patch getting worse, not better.
The June jobs report was a shocker. It was far worse than expected, and weak on all key dimensions—job creation, unemployment, the length of the workweek, and hourly earnings. Only 18,000 jobs were added in total, and the unemployment rate rose from 9.1% to 9.2%.
The recent pattern of jobs suggests that the economy hit a brick wall in May. It added an average of 215,000 jobs per month in the three months ended April, but only 22,000 per month in May and June. Supply-chain disruptions and bad weather are unconvincing as explanations for the extent of the weakness. A delayed response to the cumulative impact of surging commodity costs during the first half of the year is a more plausible explanation, but this report has dashed hopes that the economy was about to accelerate again now that those costs have eased back.
The employment report is showing a much bleaker picture than other indicators (such as the ISM surveys and the ADP employment survey). We must hope that it is overstating the extent of the slowdown in the economy, or that employment is showing its normal lagged response to slower growth and will pick up with growth in the second half. At face value, it shows stagnation now.
Champagne toasting in the Oval Office tonight in celebration no doubt.
Obama expected much higher numbers than that via political design however.
I will work for lemonade!
An economy so crappy even the compliant news media can’t spin it into skittles and unicorns.
Meanwhile unemployment rate in Mexico hums along at 5% ( I’m not kidding).
YEAH! We are number 34!
I hear the economy needs 254,000 jobs a month for 45 months to get back to pre-recession (depression) levels.
18,000 is a disaster
I’m wondering if Obama is beginning to have grave self-doubts and doubts about his economic team, Geithner et al. He probabaly didn’t have clue what to do about the economy, they told him, lets throw a stimulus at it, time for Keynesian policies, in a short time we’ll see results. He is truly up a creek without a paddle.
I am not going to hold my breath that Obama might stop being a dried in the wool Marxist since birth.
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