Services Job Losses Worrisome
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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8:42 (Dow Jones) The 86K March job decline was biggest since 1991. Of most
importance is the 19K drop in services jobs. That suggests manufacturing
weakness filtering into services, which make up the bulk of output and
employment. (BB)
8:39 (Dow Jones) One of the few industries that showed an increase in
payrolls was construction, up 12,000. The construction sector remains a
support for the rest of the economy and new home building sets off a
sequence of spending for furniture and appliances in future months. (JM)
8:38 (Dow Jones) Selloff in stock futures picks up steam. Worry appears to
be hourly wage component, but isn't Fed's bigger issue downside concern?
DJIA futures off 100, Nasdaq down 35, S&Ps fall 10. (TG)
8:36 (Dow Jones) The unemployment rate continues to creep up, but in March
at 4.3% it is still only 0.4 percentage point above its low point of 3.9%
last Sept. and Oct. The unemployment rate is likely to go up further in
future months, even if a recession is avoided. (JM)
8:33 (Dow Jones) Average hourly earnings up 0.4%, slightly more than
expected. But Fed's worried about growth, not inflation, so wages of
secondary importance. (BB)
8:32 (Dow Jones) March payrolls down 86K and jobless rate at 4.3%. DJ/CNBC
survey had called for 60K job gain and 4.3% jobless rate. Weak payroll
number should confirm 50 BP May rate cut forecasts, but probably not enough
to reignite inter-meeting rate cut speculation. (BB)
8:30 (Dow Jones) Some of the large gains posted in Thursday's session will
be taken away at the start of the session. At least that's how things look
before the release of March payroll numbers. The nation's unemployment rate
is expected to have risen to 4.3%, and data that look to be in line
shouldn't push equities too far in either direction. There were some
technology-related earnings shortfalls projected last night, though the
names involved weren't the very top-tier companies. Tellabs (TLAB) and
RadioShack (RSH) warned this morning. Stock futures down modestly, Tsys
firm. (TG)
(END) DOW JONES NEWS 04-06-01
08:42 AM
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