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Wall Street opens lower on disappointing jobs data
Stock Markets29 minutes ago

(Reuters) – U.S. stocks opened lower on Friday, led by a slump in financial stocks after disappointing May nonfarm payrolls data raised doubts if the world’s largest economy could absorb a rate hike.

The Dow Jones Industrial Average (DJI) was down 42.66 points, or 0.24 percent, at 17,795.9.

The S&P 500 (SPX) was down 3.94 points, or 0.19 percent, at 2,101.32.

The Nasdaq Composite (IXIC) was down 13.22 points, or 0.27 percent, at 4,958.14.

The BLS reported that in May a paltry 38,000 jobs were added, a plunge from last month’s downward revised 123K (was 160K). The number was the lowest since September 2010!

 

Goldman Slashes Rate Hike Odds After “Awesomely Bad” Jobs Report

“In light of the weaker-than-expected employment report, we have revised our subjective odds of the timing of the next FOMC rate increase. We now need see probabilities of 0% for June, 40% for July, and 30% for September.”

As Bloomberg reported:

European shares tumbled as investors considered the implications of disappointing U.S. jobs data that cast doubt on the strength of the world’s biggest economy.

The Stoxx Europe 600 Index slid 1.4 percent at 3:21 p.m. in London, erasing an earlier gain of as much as 0.7 percent. It is heading for a 2.8 percent decline this week, its first weekly drop in four. After retreating as much as 5.4 percent from an April 20 high, European shares had regained momentum at the end of May as better-than-forecast U.S. data fueled optimism that the economy could cope with higher interest rates. But progress stalled this week amid resurgent worries about global growth.

From the NYT:

In a troubling sign that the economic recovery may have stalled, at least temporarily, the government reported on Friday that employers added just 38,000 workers in May. The significant plunge in hiring is likely to push back a decision by the Federal Reserve to raise interest rates.

The official unemployment rate dropped to 4.7 percent from 5 percent, but that was primarily a result of Americans dropping out of the labor force.

The jobs picture showed further weakening as revisions released on Friday to March and April’s figures cut 59,000 from the previous employment totals. Over the last three months, job creation has averaged only 116,000 a month. May’s gains marked the lowest figure since September 2010.

Foto
USDEUR 3 June

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