US stock future indexes reacted positively (SPY +0.2%) for today's crucial jobs report which came in improved, but below expectations. The Labor Department reports the U.S. economy added 151,000 jobs in August, below expectations for 180,000 jobs. The unemployment rate and the labor force participation rate remained unchanged.
Here is the current market situation from CNN Money
European markets are broadly higher today with shares in London leading the region. The FTSE 100 is up 1.28% while France's CAC 40 is up 0.70% and Germany's DAX is up 0.41%.
The first column is what was reported this morning. The second column is what analysts had forecast and the third column is the previous report. Full calendar HERE.
WASHINGTON, Sept 2 (Reuters) - U.S. employment growth slowed more than expected in August after two straight months of robust gains and wage gains moderated, which could effectively rule out an interest rate increase from the Federal Reserve this month.
DUBLIN (Reuters) - Ireland's cabinet agreed on Friday to join Apple in appealing against a multi-billion-euro back tax demand that the European Commission has slapped on the iPhone maker, despite misgivings among independents who back the fragile coalition.
SEOUL (Reuters) - Samsung Electronics Co Ltd will replace all Galaxy Note 7 smartphones equipped with fire-prone batteries and halt sales of the flagship product in 10 markets, a devastating blow for what had been a revival in the firm's mobile business.
SAN FRANCISCO (Reuters) - Alphabet Inc's Google has suspended Project Ara, its ambitious effort to build what is known as a modular smartphone with interchangeable components, as part of a broader push to streamline the company's hardware efforts, two people with knowledge of the matter said.
WASHINGTON (Reuters) - The U.S. trade deficit fell more than expected in July as exports rose to their highest level in 10 months, offering further evidence that economic growth picked up early in the third quarter.
LONDON (Reuters) - Oil edged higher on Friday, supported by the previous session's weakness in the U.S. dollar and Russian comments in favor of a production freeze, though contracts remained on track for the biggest weekly loss in nearly eight months.
(Reuters) - Heavy machinery maker Caterpillar Inc said it could lay off about 2,000 employees at a plant in Belgium, as it considers shifting production to other facilities as part of a restructuring program announced last year.
NEW DELHI/DETROIT (Reuters) - Ford Motor Co has shelved plans to produce a new compact car family designed mainly for emerging markets like India and China, industry sources said, reflecting disappointing sales of mainstream models in the world's fastest growing car markets.
In just half an hour, the August payrolls report, critical in framing the Fed's September decision according to Stanley Fischer, will be released. As previewed earlier, here are the consensus expectations:
Change in Nonfarm Payrolls Exp. 180K, Prev. 255K, Jun. 287K
Average Hourly Earnings Exp. 0.20%, Prev. 0.30%, Jun. 0.10%
Broken down by bank, the expected payrolls change is as follows:
Deutche Bank +160k
As the graph below from Jim Reid shows, August has tended to be a weaker month relative to the rest of the year. Indeed since the start of the sample the average monthly payrolls reading is +186k while the average August reading is just +150k (which is the joint lowest with July). Although July's number went against this trend, will both July and August buck their seasonal trend?
Leading into the number the manufacturing ISM (49.4 vs. 52.6) showed broadbased weakness: New orders (49.1 vs. 56.9), production (49.6 vs. 55.4), employment (48.3 vs. 49.4) and inventories (49.0 vs. 49.5) all declined in August and this may have helped bring expectations down for today's payrolls below the consensus noted on Bloomberg. Fed rate hike probabilities weren't greatly moved (September down 2% to 34% and December unchanged at 60%) but we did see the Green ...
Overnight the debate over the fate of the OPEC oil production freeze got a new and unexpected entrant when Russian president, Vladimir Putin said he'd like OPEC and Russia, producers of half of the world's oil, to reach a deal to freeze supply and expects the dispute over Iran's participation can be resolved. As Bloomberg first reported, Putin said that "from the viewpoint of economic sense and logic, then it would be correct to find some sort of compromise," speaking in an interview in Vladivostok. "I am confident that everyone understands that. We believe that this is the right decision for world energy."
Exclusive: Vladimir Putin on Russia's oil, an output deal, Saudi Arabia and Iran https://t.co/ISoE7poKVg pic.twitter.com/9z7vpHNbd2
— Bloomberg (@business) September 2, 2016
Just as surprisingly, Putin sided with Iran saying that oil producers recognize that the middle-eastern nation, which has mostly restored the output halted during three years of trade restrictions, deserves to complete its return to world markets. While talks collapsed in April over whether Iran should join in, countries now recognize the nation - freed just months ago from international sanctions - should be allowed to continue raising production, Putin said. The Russian president said he may recommend completing the plan when he meets with Saudi Deputy Crown Prince Mohammed bin Salman at the Group of 20 summit in China next week.
"Iran is starting from a very low position, connected with the well ...
Some 70,000 households were left without power after Hermine was became the first hurrican to make Florida landfall since 2005, slamming Florida's northern coast for, before it weakened to a tropical storm and ploughed its way overland toward the Atlantic Coast on Friday.
The hurricane brought heavy rains and packed top winds of 75 miles (120 kilometers) an hour on Friday, as it remained a Category 1 hurricane after making landfall near Saint Marks, Florida, the U.S. National Hurricane Center, causing damage and leaving tens of thousands of households without power along Florida's Gulf Coast. Hermine became the fourth hurricane of the 2016 Atlantic storm season.
Bad flooding along banks of Steinhatchee River. Boats washed onto roads. Lots of debris. Hurricane #Hermine. pic.twitter.com/PVEJBixMc1
— Vic Micolucci - WJXT (@WJXTvic) September 2, 2016
"It is a mess... we have high water in numerous places," Virgil Sandlin, the police chief in Cedar Key, Florida, told the Weather Channel. Strong gusts downed power lines and trees as widespread flooding inundated communities in Florida before the hurricane weakened into a tropical storm as it reached Georgia and South Carolina, where conditions deteriorated early on Friday morning.
The following photo showed just how extensive the blackout was.
Incredible thing to see. All of Florida State and Tallahassee, dark. #Hermine pic.twitter.com/u6uMuPRLjL
Week 34 of 2016 shows same week total rail traffic (from same week one year ago) contracted according to the Association of American Railroads (AAR) traffic data. This week, all rolling averages' contraction worsened.
The pace of hiring in the U.S. slowed sharply in August as the economy added just 151,000 jobs, a smaller than expected increase that may prompt the Federal Reserve to keep interest rates at current low levels until after the presidential election.
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