Jobless report hurts the dow, the earlier reports prove to be way off
The big news today was the Labor Department’s Non-farm payrolls, which took Wall Street off guard reporting that there were 467,000 jobs lost in June versus the -365,000 that was expected as the recession continues to grip the nation.
The Unemployment rate rose to its highest level since August of 1983 to 9.5%, slightly lower than the 9.6% that was anticipated and up from June’s reading of 9.4%.
So what exactly does “we saved or created 150,000 jobs” mean?
The weak data sent Stocks plunging and giving a lift to Bond prices.
The benchmark 4.5% coupon rose 9bp to close at $99.97.
The Treasury announced next week’s round of auctions with a size of $73B.
The NY Fed purchased $23.1B in Mortgage backed Securities in the latest week concentrated in the 4.5% to 5.5% coupons.
Stocks plunged on Wall Street today weighed down by the lousy Jobs report.
The Dow plummeted 223 points to end at 8,280, while the Nasdaq fell 50 points to end at 1,796.
The closely watched S&P 500 Index dropped 26 points ending at 896.
Oil dropped on the NYMEX to $66.73/barrel down $2.58 as the poor payrolls report could keep demand at low levels.
Have a Happy 4th of July!
D Fragoso