Tag Archive: jobless rate

Earlier today, the government released the report on US Jobs. As some have predicted over the past few days, the data was bad. After my report yesterday, the markets went even lower because of the predicted low quality of the jobs report to be released today. And today, the down market carried over.

The Dow Jones dropped more than 250 points so far and it doesn’t look like it’s stopping. The graph on the right, provided by Yahoo! Finance shows the steep drop the Dow Jones Industrial Average took today. The combined drop of yesterday and today has nearly undone the rally we have seen during the last 4 market days of August. The sight isn’t pretty but we will bounce back! The Dow Jones is currently at 11,239, making the gap between the current price and the magic 12,000 mark even greater.

Dow Jones Huge Drop on September 2nd

by Yahoo! Finance

The NASDAQ Composite dropped more than 71 points and is currently at 2,474. The S&P 500 is at 1,173 after a drop of more than 31 points or more than 2.5% of its value. The New York Stock Exchange (NYSE) dropped almost 200 points so far and is currently standing at 7,244.

The US Jobs Report stated that in August, only created 17,000 jobs, which is almost nothing compared to what was expected. What makes this worse is that they revised the amount of jobs for June and July as well. They found that there were more than 58,000 fewer jobs than what was originally thought. So not only did we barely create jobs in the private sector July, we had the numbers for the two previous months wrong. And even worse than that, the government/public sector also cut more than 17,000 jobs in August. They pretty much cancel each other out so the economy didn’t really see any jobs created last month. This is actually very sad.

The unemployment rate stays at 9.1%. This lowers the confidence investors have in the economy. This could signal that the federal government will come out with another Stimulus to encourage consumer spending. The problem with a stimulus package is getting the money. They would have to figure out where the money would come from because they can’t just take it away from something essential and they can’t just print more money because it just lowers the value of the dollar.

We will have to see where things go from here but for today, we can expect the stock market to stay in the red. I wouldn’t be surprised if the stock market actually goes lower than it has so far. The news today was definitely surprising especially the part about the revisions of June and July jobs data. The government has to be able to do something to turn things around and I am not sure if a stimulus would be the best plan. I’m not an economist so I can’t say what would be best but so far, everything they’ve tried hasn’t worked.

Whenever there is economic distress, Gold seems to always jump in joy. Last week, the price of Gold dropped below $1,800 an ounce and stayed there for some time. But the bad trading sessions over the past few days has given Gold the chance to rally all over again. Today gold has gained more than 50 points. Currently it sits at $1,878 an ounce, well over a $100 gain from last week. If the economic distress continues and the stock market continues to plummet, we can expect gold to keep rallying. It does seem that the Gold bubble isn’t bursting, it has life left. I still believe that it will burst sooner or later because the economy is bound to bounce back. We have seen economic hardships like this several times in our history and every time, the economy recovers. We have no reason to believe that this time is any different.

We just have to keep a positive outlook. Hopefully the economy turns around soon and hopefully the job data for September is better when it’s released next month.

Stock Market Lowers on Job Report

By Idea go

The government is due to release August’s Job report tomorrow. As a result, the stock market has gone down a bit as investors become wary about tomorrow’s report. Investors are predicting that the jobless rate will be up another 0.1% to 9.2% compared to July. They also believe that fewer jobs were added in August compared to July. These worries have sent the stock market to the red side today. We might actually finish in the red today if some good news doesn’t come out in the next 2 and a half hours.

But this little slump isn’t bad. The stock market is a volatile playground and it is due to go up and down from one day to another. The little drop we have seen so far today won’t undo the huge gains we have seen over the two weeks. And overall, today is a slow day for trading in the stock market.

So far, the Dow Jones Industrial Average has dropped 22 Points and the NASDAQ Composite has dropped almost 11 points. The S&P 500 has dropped just 3 points while the NYSE has dropped almost 18 points.

If the news tomorrow is worse than expected, we can assume the stocks to keep going down tomorrow. However, I don’t think it will be enough to undo any of the gains we have seen in the past 2 weeks. I am also hopeful that the report tomorrow is better than expected. If that’s the case, we can expect the stock market to rally once again and we can also expect that momentum to carry over to the beginning of next week.

The stock market did see an increase earlier today and hopefully, it will bounce back. We have had a day like this earlier this week on Tuesday. The stock market was at first down but by the closing bell, it finished in the green, even though the gain was very little compared to the rest of the week. We could see the same today because the losses so far haven’t been that great and we are very close to the borderline of the green zone. We will have to keep monitoring the stock market to see where everything lands.

All in all, not much has happened today. The slump comes from speculations of what will be released tomorrow. The only way to find out the actual job report is to listen to a report of the report or be there when the government announces it. Hopefully it’s good news, or hopefully it’s not too bad. I don’t think the news will have a huge negative effect on the markets for tomorrow or next week, but you never know.