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Ugly August U.S. Jobs Report Made Romney's Day

By , Contributing Writer, Money Morning -

From numerous angles, the August U.S. jobs report was disappointing - except for GOP presidential hopeful Mitt Romney, who used the numbers to blast U.S. President Barack Obama.

The Labor Department reported today (Friday) that U.S. employers added a paltry 96,000 jobs last month.

Unemployment and the economy are two of the most prominent issues of this year's campaign, and Romney seized the opportunity to stake a political advantage following the dreary news.

"If last night was the party, this morning is the hangover. For every net new job created, nearly four Americans have given up looking for work entirely," Romney said in a statement.

He continued stating that President Obama has not made good on his promises, and reiterated the message that the United States is no better off than it was four years ago when the president took office.

Romney pledged to create some 12 million new jobs by the end of his first term.

In a rally cry Romney said, "America deserves new leadership that will get our economy moving again."

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Dow Jones Erases 2012 Gains - What's Next?

By , Contributing Writer, Money Morning -

The "sell in May and go away" approach panned out this year as the month was not merry for markets.

U.S. equities experienced a steep drop during May, enduring the worst monthly declines in two years. The Dow Jones Industrial Average fell 6.2%.

A good part of May's decline was blamed on the ongoing European sovereign debt crisis that has swelled of late and shattered investors' confidence. But things on the home front are far from ideal.

The flight from stocks flowed into the first day of June. The Dow plunged 274 points Friday, erasing all of the year's gains. Fueling Friday's fall was May's dreadful U.S. jobs report, which showed employers added just a trifling 69,000 in payrolls, less than half the expected 150,000.

The Standard & Poor's 500 Index and Nasdaq both plummeted more than 2%. The Nasdaq has given back more than 10% since its late-March peak.

Traders consider a 10% drop to be a market correction. Meanwhile, the S&P 500 is just a mere point above correction territory.

Just 17 of the 500 companies in the S&P index ended higher on Friday.

"The big worry now is that this economic slowdown is widening and accelerating," Sam Stovall, chief equity strategist at market research firm S&P Capital IQ, told the Associated Press.

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Are Economic Indicators Signaling a Sell Off?

By , Money Morning -

Summary:A slew of economic indicators - weak growth, poor jobs, low home prices - are pointing south, but the stock market has been moving up. Money Morning Capital Waves Strategist Shah Gilani joined Fox Business' "Varney & Co." Monday to explain the disconnect between the markets and the U.S. economy. Gilani forecast what investors can […]

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June's Abysmal Jobs Report is Just the Beginning

By , Associate Editor, Money Morning -

The June jobs report was abysmal - bud sadly it's just the beginning.

After just a few months of modest, stimulus-induced improvement the jobs market is again sliding backwards into a "new normal" characterized by even higher rates of unemployment.

"Unfortunately, I expect chronic high unemployment to be with us for years, and to borrow a phrase from Bill Gross of PIMCO, that's the real ‘new normal,'" said Money Morning Chief Investment Strategist Keith Fitz-Gerald.

The dismal job growth boosted the unemployment rate to 9.2% in June from 9.1% the month prior. The labor force declined by 270,000, and the total amount of people out of work, including those who have stopped looking, is up to 16.2%, from 15.8% the month before.

"It is about as bad as anyone could imagine," Nigel Gault, chief U.S. economist for IHS Global Insight, told MarketWatch. "On face value it does suggest we are grinding to a halt," he said.

Indeed, the meager 18,000 jobs added in June actually led some analysts to question the report's accuracy.

"At first, when I heard it, I thought maybe they had announced the wrong numbers, they were so bad," Robert Brusca of Fact and Opinion Economics told CNN.



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