Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: US payrolls disappoint

While you were sleeping: US payrolls disappoint

Feb 6 (BusinessDesk) – Wall Street slipped as weaker-than-expected US payrolls data outweighed a better-than-expected report on services industries, and fuelled doubt about the strength of the American economic recovery.

US private employers added 175,000 jobs in January, while December's gain in jobs was revised lower to 227,000, down from the initially reported 238,000, according to ADP Research Institute data. Harsher-than-usual winter weather was partly to blame for the smallest increase in five months.

Separately, the Institute for Supply Management said its services index rose to 54 in January, up from 53 in December. That was slightly better than economists had anticipated.

"Markets are concerned and want to see that the US economy stays on track," Dan Dorrow, head of research at Faros Trading in Stamford, Connecticut, told Reuters. “My view is the US economy is growing above trend and you can't conclude too much from one month's worth of data.”

In afternoon trading in New York, the Dow Jones Industrial Average slipped 0.06 percent, while the Standard & Poor’s 500 Index fell 0.21 percent and the Nasdaq Composite Index slid 0.43 percent.

Slides in shares of Pfizer and Boeing, down 2.4 percent and 1.3 percent respectively, outweighed gains in shares of 3M and Cisco, up 1.4 percent and 1 percent respectively, leading the Dow lower.

So far in 2014, the Dow has shed 6.6 percent, while the S&P 500 gave up 5.1 percent.

Investors will now watch Friday’s nonfarm payrolls even more closely to gauge the strength of the US labour market, a key indicator for Federal Reserve policy makers. The Labor Department is forecast to show nonfarm payrolls grew by 184,000 last month, up from a gain of 74,000 in December, while the unemployment rate held steady at 6.7 percent.

"There's fear as we move into Friday's report that we're going to see a weather impact that is going to distort the number and make it difficult to know if it is covering up something more substantial," Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont, told Reuters.

In Europe, the Stoxx 600 Index managed to end the day with a 0.1 percent increase from the previous close, as did the UK’s FTSE 100. France’s CAC 40 closed marginally higher. Germany’s DAX fell 0.1 percent.

So far the year the DAX has shed 4.6 percent, while the FTSE 100 has lost 4.2 percent.

Kevin Lilley, head of European equities at Old Mutual Global Investors UK, remains upbeat.

“The European economy has only just started a recovery phase,” Lilley told Bloomberg News. “I’m optimistic we’ll see gains for the year.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:


Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news