Stocks take jobs – Report disappointment in stride

The highly anticipated August jobs report was nothing to brag about.

a store front at night

© Provided by Kiplinger

The Bureau of Labor Statistics revealed on Friday that non-farm payrolls in the United States only increased by 235,000 last month – as Kiplinger predicted a “hiccup” in hiring due to the Delta COVID variant , economists had always set the bar high at 720,000 added jobs.

The unemployment rate fell to 5.2% from 5.4% in July, matching the estimate, and year-over-year wage growth of 4.3% was higher than expected . Still, the widely held belief on Friday was that strong job growth would have prompted the Federal Reserve to announce cutbacks on its bond purchases later this month, but “that’s no longer likely,” he said. said Chris Zaccarelli, chief investment officer. agent of the Alliance of Independent Advisers.


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“Instead, the Fed will have to wait to see further improvement in the labor market and may not be able to announce its reduction plans until the November meeting,” he said.

Rick Rieder, BlackRock’s chief investment officer for Global Fixed Income, points to a number of factors that may have played a role in the August data decline, including the uncertainty of the Delta variant, the expansion of benefits from unemployment insurance and parents still caring for children who weren’t yet back in school.

“The September data will be fascinating to look at, in terms of the potential transition of these things (end of UI benefits, summer chill, potential decrease in hospitalizations, kids going back to school, etc.) and how quickly the momentum towards full employment is picking up again, ”he says.

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Investors, weighing a significant slowdown in employment dynamics but potentially a few more months of maximum market stimulus, were content with inertia.

Video: Stocks hit by disappointing jobs count (CNBC)

Equities affected by a disappointing number of jobs

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The Nasdaq Composite (+ 0.2% to 15,363) edged up to a new high thanks to the leadership of the technology sector (+ 0.4%) on Friday. The S&P 500 recorded a slight decline from yesterday’s highs of 4,535, while the Dow Jones Industrial Average fell only 0.2% to 35,369.

And a reminder: the stock market is closed on Monday, September 6, on the occasion of Labor Day.

Other stock market news today:

  • Small cap Russel 2000 fell 0.5% to 2,292.
  • Open source database developer MongoDB (MDB) jumped more than 26% after the company reported a 44% increase in year-over-year revenue to $ 199 million. In addition, its Atlas cloud database revenue increased 83% from the previous year and now accounts for 56% of total revenue. The company also reported an adjusted loss per share of 22 cents. Analysts on average expected revenue of $ 184.2 million and a loss of 39 cents per share. “MongoDB not only

    continues to grow its developer base with new capabilities, but is also seeing growing interest from large companies, who increasingly see it as a strategic partner supporting a growing list of use cases, the result years of investing in the market that are now paying off, ”Oppenheimer analysts wrote in a note. They maintained their outperformance rating, which equates to a buy.

  • DiDi Global (DIDI) got a boost today after a Bloomberg News report suggested that several state-owned companies in China – including Shouqi Group, a Beijing-based transportation company – were considering an investment in the ridesharing service. The report cites people familiar with the matter, although no details have been given or confirmed. DIDI stock rose 2.4% today to close at $ 9.02, which is still well below its end-of-June IPO price of $ 14 per share.
  • U.S. crude futures contracts edged down 1.0% to $ 69.29 per barrel.
  • Gold Futures climbed 1.2% to close at $ 1,833.70 – their highest settlement price since mid-June.
  • The CBOE Volatility Index (VIX) slipped 0.6% to 16.32.
  • Bitcoin On Friday, it broke the $ 50,000 mark, rising 2.3% to $ 50,457.20. (Bitcoin trades 24 hours a day; the prices listed here are at 4 p.m. each trading day.)

chart, histogram: stock chart for 090321

© Provided by Kiplinger
stock chart for 090321


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