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DOW – 120 = 17,419
SPX – 16 = 2083
NAS – 83 = 5056
10 YR YLD – .03 = 2.23%
OIL – .31 = 44.84
GOLD + 5.00 = 1090.50
SILV + .06 = 14.76
Jobless claims rose by 3,000 to 270,000 in the week ended August 1. Firings are at historically low levels as employers hold on to more workers. More hiring would help convince Federal Reserve policy makers that the economy can withstand an increase in the benchmark interest rate this year. Claims have remained below the 300,000 level since March.
Outplacement consult Challenger, Gray & Christmas reports employers announced 105,696 layoffs last month. A year ago, U.S. companies announced plans to cut 46,887 jobs. The Army accounted for more than half of the total with 57,000 cuts expected over the next two years. The technology sector also contributed to July's announced job reductions, with computer and electronics companies announcing 18,891 layoffs in July.
Tomorrow is the big monthly jobs report; and it probably represents the most important data the Fed will consider before the September 17 FOMC meeting. And the Fed will need to communicate any action beforehand to avoid disruption in the financial markets. We may be seeing a rate hike being priced in right now. The major averages came off session lows in the close. The Dow Jones industrial average ended at its lowest level in 6 months and posted its first 6-day losing streak since October.
