Unexpected Increase In Unemployment Rate May Lead To Strength On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Friday, 01 September 2023 10:29:25 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( Breaking: Price of Gold & Silver set to EXPLODE in 2023! Read Now... Attention investors and retirement savers...Investment experts and even mainstream news publications are predicting a windfall for gold and silver prices in 2023! This could be the year we see the value of precious metals like gold and silver EXPLODE! You won't want to miss out! [Reserve Your FREE Gold & Silver Kit Today!]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a higher open on Friday, with stocks likely to see initial strength following the mixed performance seen in the previous session. The futures saw further upside following the release of the Labor Department?s highly anticipated report on employment in the month of August. While the report showed modestly stronger than expected job growth in August, the report also showed an unexpected increase in the unemployment rate. The unexpected increase in the unemployment rate is likely to add to investor optimism about the Federal Reserve refraining from further interest rate hikes. The Labor Department said employment climbed by 187,000 jobs in August compared to economist estimates for the addition of 170,000 jobs. Meanwhile, the report also showed notable downward revisions to pace of job growth in the two previous months. Revised data showed employment rose by 105,000 jobs in June and by 157,000 jobs in July, reflecting a combined downward revision of 110,000 jobs. The Labor Department also said the unemployment rate climbed to 3.8 percent in August from 3.5 percent in July. Economists had expected the unemployment rate to remain unchanged. After failing to sustain an early move to the upside, stocks gave back ground over the course of the trading session on Thursday. The major averages pulled back well off their highs of the session, with the Dow and the S&P 500 ending the day in negative territory. The Dow jumped by nearly 180 points in early trading but ended the day down 168.33 points or 0.5 percent at 34,721.91. The S&P 500 also slipped 7.21 points or 0.2 percent to 4,507.66, while the Nasdaq inched up 15.66 points or 0.1 percent to 14,034.97 closing higher for the fifth straight session. The early strength on Wall Street partly reflected a positive reaction to a Commerce Department report showing consumer price growth in the U.S. accelerated in line with economist estimates in the month of July. The Commerce Department said the annual rate of consumer price growth increased to 3.3 percent in July from 3.0 percent in June. The faster growth matched expectations. The reading on inflation also showed consumer prices rose 0.2 percent on a monthly basis in July, matching the uptick in June as well as economist estimates. The report also said the annual rate of growth by core consumer prices, which exclude food and energy prices, inched up to 4.2 percent in July from 4.1 percent in June. The modest increase also matched expectations. Core consumer prices rose by 0.2 percent on a monthly basis in July after edging up by 0.2 percent in June, in line with estimates. The readings on prices for personal consumption expenditures are said to be the Federal Reserve's preferred gauges of inflation. "July PCE inflation was modest for a second straight month, establishing a solid runway for the Fed to leave rates unchanged next month," said Chris Low and Will Compernolle, FHN Financial Chief Economist and Macro Strategist. They added, "There is one more CPI report before the September FOMC meeting (coming during the pre-meeting quiet period) that could shift the FOMC's inflation confidence when setting rate and inflation projections for the year ahead." Buying interest waned over the course of the session, however, as traders seemed reluctant to make significant moves ahead of the release of the closely watched monthly jobs report. Networking stocks saw substantial strength on the day, driving the NYSE Arca Networking Index up by 3.1 percent to its best closing level in a month. Ciena (CIEN) led the sector higher, soaring by 15.8 percent after reporting better than expected fiscal third quarter results. Notable strength was also visible among computer hardware stocks, as reflected by the 1.2 percent gain posted by the NYSE Arca Computer Hardware Index. On the other hand, transportation stocks came under pressure over the course of the session, dragging the Dow Jones Transportation Average down by 1.3 percent. Tobacco, healthcare and gold stocks also moved to the downside as the day progressed, weighing on the broader markets. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( While the Labor Department released a closely watched report on Friday showing modestly stronger than expected job growth in the month of August, the report also showed an unexpected increase in the unemployment rate. The Labor Department said employment climbed by 187,000 jobs in August compared to economist estimates for the addition of 170,000 jobs. Meanwhile, the report also showed notable downward revisions to pace of job growth in the two previous months. Revised data showed employment rose by 105,000 jobs in June and by 157,000 jobs in July, reflecting a combined downward revision of 110,000 jobs. The Labor Department also said the unemployment rate climbed to 3.8 percent in August from 3.5 percent in July. Economists had expected the unemployment rate to remain unchanged. At 9:45 am ET, Cleveland Federal Reserve President Loretta Mester is scheduled to give closing remarks before a hybrid Inflation: Drivers and Dynamics Conference 2023. The Institute for Supply Management is due to release its report on manufacturing activity in the month of August at 10 am ET. The ISM?s manufacturing PMI is expected to inch up to 47.0 in August from 46.4 in July, although a reading below 50 would still indicate a contraction. Also at 10 am ET, the Commerce Department is due to release its report on construction spending in the month of July. Construction spending is expected to increase by 0.5 percent. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? Warren Buffett ? has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential. We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns. [Click here for full details and to join for free.]( --------------------------------------------------------------- Stocks in Focus Shares of Dell Technologies (DELL) are moving sharply higher in pre-market trading after the computer company reported fiscal second quarter results that exceeded analyst estimates on both the top and bottom lines. Athletic apparel retailer Lululemon (LULU) may also move to the upside after reporting better than expected fiscal second quarter results and raising its full-year forecast. Meanwhile, shares of Broadcom (AVGO) are seeing notable pre-market weakness after the chipmaker reported fiscal third quarter results that exceeded estimates but provided disappointing guidance. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Europe European stocks are broadly higher on Friday, as investors cheer signs of more stimulus from Beijing and data showing that the downturn in eurozone manufacturing eased last month. The Eurozone manufacturing PMI increased to a three-month high of 43.50 points in August from 42.70 points in July of 2023. Elsewhere, U.K. house prices declined at the fastest pace in more than 14 years in August, as rising borrowing costs continue to dampen housing market activity, data published by the Nationwide Building Society showed. House prices posted an annual decline of 5.3 percent after easing 3.8 percent in July. This was the biggest decrease since July 2009 and larger than economists' forecast of a 3.9 percent drop. The U.K.?s FTSE 100 Index is up by 0.5 percent and the French CAC 40 Index is up by 0.3 percent, although the German DAX Index has bucked the uptrend and edged down by 0.1 percent. Johnson Matthey has soared after the investment arm of New York-based industrial firm Standard Industries doubled its stake in the British autocatalyst maker to 10 percent. GSK is marginally higher after an announcement that the Japanese Ministry of Health, Labour and Welfare has accepted for review a supplementary new drug application for Nucala. On the other hand, shares of Aurubis have moved sharply lower after the German copper producer issued a profit warning. Salzgitter AG has also plunged after the steel manufacturer suspended its earnings guidance for fiscal 2023 for the time being. Electrolux has also fallen after the Swedish home appliance major called back certain Frigidaire gas cooktops citing risk of gas leak, fire hazard. British agricultural and engineering company Camellia has also moved to the downside after reporting its first-half results. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks ended mixed on Friday as investors waited to take cues from the all-important U.S. jobs data due later in the day, expected to show that job additions slowed to 170,000 last month. Regional losses, if any, remained limited as Beijing's support measures gave markets confidence that authorities are becoming more proactive to boost growth in the world's second largest economy. A private survey showed today that activity in China's manufacturing sector unexpectedly expanded in August. In another significant development, the People's Bank of China said it would cut banks' forex reserve ratio to help bolster the yuan exchange rate. That followed a Thursday announcement on lowering existing mortgage rates for first-time homebuyers. China's new home prices fell for the fourth month in August, a private survey showed later in the day. The dollar edged lower in Asian trading, while gold was poised for a more than 1 percent weekly gain on hopes of a less-aggressive Fed. Oil prices were also on track for a weekly gain amid tightening crude supplies. China's Shanghai Composite Index rose 0.4 percent to 3,133.25 and the yuan reached its strongest level since August 11 as investors cheered efforts by policymakers to support the country's crisis-hit property sector. Trading in Hong Kong was suspended as super Typhoon Saola edged closer to the city. Japanese shares eked out modest gains as data showed Japanese businesses cut their spending for the first time in five quarters due to global growth concerns. The Nikkei 225 Index rose 0.3 percent to 32,710.62, with financials and Sony Group pacing the gainers. The broader Topix Index settled 0.0.8 percent higher at 2,349.75, marking a 33-year high. Seoul stocks ended a choppy session higher as a survey showed the manufacturing sector in the country contracted at a faster pace in August. The country's exports fell at a less-steeper pace in the month, offering some relief to investors worried about growth. The Kospi inched up 0.3 percent to 2,563.71. Samsung Electronics soared 6.1 percent after reports that it has secured a deal to supply Nvidia Corp. with its advanced high bandwidth memory chips, used for artificial intelligence technologies. Australian stocks ended lower, dragged down by banks as signs of an entrenched recovery in the property market dented rate cut hopes. Miners also declined after four consecutive sessions of gains. Data showed Australian home prices rose for a sixth straight month in August, defying soaring interest rates. The benchmark S&P ASX 200 Index dropped 0.4 percent to 7,278.30, while the broader All Ordinaries Index ended 0.4 percent lower at 7,489.90. Across the Tasman, New Zealand's benchmark S&P NZX-50 Index slipped 0.2 percent to close at 11,528.73 despite encouraging consumer confidence data for August. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are advancing $0.81 to $84.44 a barrel after surging $2 to $83.63 a barrel on Thursday. Meanwhile, after slipping $7.10 to $1,965.90 an ounce in the previous session, gold futures are climbing $11.90 to $1,977.80 an ounce. On the currency front, the U.S. dollar is trading at 144.67 yen versus the 145.54 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0856 compared to yesterday?s $1.0843. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49