The verdict? Non-farm payrolls added just 151,000 jobs in August, well below the 180,000 consensus expectation among economists. The markets pushed higher as investors speculate that the Federal Reserve is unlikely to raise interest rates in September. This morning, economist Austan Goolsbee told CNBC that he doesn't think that this jobs report will push the Fed to act before the 2016 election.
Yesterday, the Dow gained 18 points despite a troubled day of earnings reports, weak auto sales, and sharp declines in oil prices. Markets received a slight boost from improving economic data in China, where a surprise manufacturing expansion bolstered trader sentiment.
Let's take a look at Thursday's Stock Market Numbers:
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Dow Jones: 18,419.30; 18.42; 0.10%
S&P 500: 2,170.86; -0.09; -0.00%
Nasdaq: 5,227.21; 13.99; 0.27%
September is historically the worst month for stock markets. That's why we advise investors to be particularly selective. [Editor's Note: If you're looking to profit, these are the stocks you need to own.]
The Dow Jones Industrial Average projected a 54-point gain despite the weakness of the August jobs report. The report puts the Federal Reserve in focus. Expect a lot of chatter today about the timing of the central bank's next interest-rate hike. The Fed is set to meet later this month and could raise rates for the first time since December 2015.
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So much speculation about interest rates and the Federal Reserve is not healthy for the markets. Money Morning Chief Investment Strategist Keith Fitz-Gerald explains that the U.S. central bank has morphed into an abomination. The Fed was originally designed to protect Americans and their deposits. But over the last 103 years, the central bank's interest has turned from protecting ordinary Americans to protecting the privileged big banks and crony capitalists. Here's Keith's latest insight on the dangers of the Fed policies, and what it means for your money.
Oil prices were on track for their largest weekly loss in eight months as traders eyed the growing supply glut in the United States. Prices were on the rise this morning after Russian President Vladimir Putin said he supported a production freeze among oil exporters to stabilize crude prices. This morning, the WTI crude price was up 0.8%, while Brent crude added 1.2%.
Today will be a busy day for the smartphone industry. First, Samsung Electronics announced that it will be stopping the sale of its Galaxy Note 7. The manufacturer announced that it has uncovered problems with its batteries. Meanwhile, its rival Apple Inc. (Nasdaq: AAPL) is prepping to launch its latest version of the iPhone 7.
If you haven't heard, there's a bombshell report that the United States allowed secret loopholes in its nuclear agreement with Iran. It turns out that last year's landmark Iran nuclear deal between Washington, Tehran, and other world powers included a few provisions that were kept from the public. Here's what it means to the world, and how the deal impacts the global oil markets.
But the big news is a story that fell under the radar earlier this week. On Tuesday, Federal Reserve Vice Chair Stanley Fischer said negative interest rates "seem to work" in a Bloomberg interview. The central banker appeared to advocate for a policy that forces people to pay banks for the right to store their money in a vault. However, he didn't offer too many specific on why he believed such a punishment is good for anyone, even the banks. Here's the truth about negative interest rates, what it means for your money, and the future for the stock market.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.