The worse-than-expected June employment report is dampening pre-holiday spiritin stocks and commodities before the 4th of July holiday.Lind Plus Senior Market Strategist Richard Ilczyszyn said when there is a holiday on a Friday, the Labor Department often delays the employment report release until the following week. But this time, the report was released a day early. He said there was likely a reason for that.
“I think it was part of the government’s strategy to have this release out before the holiday, so we could forget about it by Monday. If it were to come out next week, there’d be even more activity to the downside (in stocks),” he said.
In his morning notes, MF Global Research Senior Interest Rate and Equity Market Analyst Nick Kalivas said while the report was bearish stocks and bullish Treasuries, there was“not much to really say” about it.“The economy remains weak. I believe that hiring will remain depressed due to the socialist policies in Washington and lack of an economic driver,” he said.
Breakdown of the numbers
Non-Farm Payrolls fell 467,000.(-367,000 expected). Net revision is +8K. All in May.
Unemployment rate rose 0.1% to 9.5%. (9.6% expected)
Initial unemployment claims fell 13,000 to 514,000. (615,000 expected)
Continuing claims fell 36K to 6.702 mln. (6.740 mln expected)
1. Construction jobs declined 79,000
2. Manufactuirng decreased 136,000
3. Retail declined 21,000
4. Business services fell 188,000 with temporary help off 38,000
5. Financial fell 27,000
6. Government jobs declined 52,000
7. Education and healthcare bucked the trend and rose 34,000
Household employment fell 374,000.
Labor force declined 155,000
Unemployment rose 218,000 – less than recent months
Hourly earnings were unchanged.
Hours worked fell 0.1 to 33.0.Manufacturing rose 0.1 to 39.5 and OT was flat at 2.8
