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

 


While you were sleeping: Strong US private jobs data

While you were sleeping: Strong US private jobs data

July 3 (BusinessDesk) – Wall Street lingered near record highs as investors awaited the government’s jobs report, due on Thursday, after stronger-than-expected private jobs data underpinned the view that the world’s largest economy is in better shape than thought.

In the final hour of trading in New York, the Dow Jones Industrial Average crept 0.07 percent higher, while the Standard & Poor’s 500 Index eked out a 0.03 percent gain. The Nasdaq Composite Index slipped 0.05 percent lower. Both the Dow and the S&P 500 finished the previous day at record closing highs.

The Dow was mixed as gains in shares of shares of IBM and Pfizer, up 1.1 percent and 1 percent respectively, offset declines in shares of JPMorgan Chase and United Technologies, down 1 percent and 0.9 percent respectively. JPMorgan slid a day after its CEO Jamie Dimon said he was diagnosed with curable throat cancer.

US companies added 281,000 workers to their payrolls in June, the most since November 2012, according to a report by the ADP Research Institute.

"This is further proof that recent weaker growth numbers are not a true reflection of the U.S. economy," Stuart Hoffman, chief economist at PNC Financial Services in Pittsburgh, told Reuters.

Still investors were reluctant to place fresh bets before the government jobs report due on Thursday. Payrolls probably increased by 212,000 in June after rising by 217,000 the prior month, according to a Reuters poll of economists.

The solid ADP report lowered the appeal of US Treasuries, pushing the yield on the benchmark 10-year bond six basis points higher to 2.63 percent.

“The bond market is telling you the economy is improving, but low levels of rates mean growth is still slow and inflation will not be a threat,” Adrian Miller, director of fixed-income strategies at GMP Securities in New York, told Bloomberg News. “All eyes will be on the jobs report.”

Another report showed US factory orders declined 0.5 percent in May, following a revised 0.8 percent increase in April.

Meanwhile, US Federal Reserve Chair Janet Yellen said in a speech at a meeting hosted by the International Monetary Fund that she did not see the need for monetary policy to deviate from a primary focus on attaining price stability and maximum employment, in order to address financial stability concerns.

“That said, I do see pockets of increased risk-taking across the financial system, and an acceleration or broadening of these concerns could necessitate a more robust macroprudential approach,” Yellen said.

"Monetary policy faces significant limitations as a tool to promote financial stability: Its effects on financial vulnerabilities, such as excessive leverage and maturity transformation, are not well understood and are less direct than a regulatory or supervisory approach; in addition, efforts to promote financial stability through adjustments in interest rates would increase the volatility of inflation and employment,” according to Yellen.

In Europe, the Stoxx 600 Index finished the day with a 0.2 percent gain from the previous close, as did the UK’s FTSE 100. Germany’s DAX rose 0.1 percent. France’s CAC 40 fell 0.4 percent.

The European Central Bank is widely expected to keep its benchmark interest rate steady at a meeting on Thursday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news