Rarebird you are right on: " We have finally run out of workers!!!!"
Only 8000 new jobs!!!"
Next on the line:
" sharp wage rises "
Larry Kudlow on CNBC:
" Markets on a roll. Strong growth without inflation".
Meanwhile the Bond is up to 6.20 and oils are up:
I guess the market knows something Larry doesn'.
G O....... G O L D
TA
-----------------------------------
Job growth screeches to halt
Gains would have been 50,000 without storm
By Rex Nutting, CBS MarketWatch
Last Update: 9:10 AM ET Oct 8, 1999
Bond Report
WASHINGTON (CBS.MW) -- Job growth weakened sharply in
September,the Labor Department reported Friday, saying 8,000 jobs were
lost during the month.
Average hourly pay rose 0.5 percent to $13.37, bring the annual increase to
3.5 percent.
The decline in jobs should cheer nervous stock and
bond markets, which are fretting that the Federal
Reserve will boost interest rates one more time in
November to counter a strong economy. The big
jump in wages will temper the markets' enthusiasm,
however.
Bonds reacted cautiously to the number, rising 3/32
to 99 10/32, putting the yield ($TYX: news, msgs) of
the 30-year Treasury at 6.174 percent. See Bond
Report. S&P futures(WP=Z9: news, msgs) were up
4.00. See Market Snapshot.
Hurricane Floyd cut about 58,000 jobs, the
department estimated. "But employment growth was
weak even in those areas and industries largely
unaffected by the hurricane," said Katharine G.
Abraham, commissioner of the Bureau of Labor
Statistics.
The unemployment rate was steady at 4.2 percent.
The average workweek dipped six minutes to 34.4
hours.
A group of economists polled by CBS.MarketWatch.com was looking
for gains of 221,000 in nonfarm payrolls, an unemployment rate of 4.2
percent and a rise of 0.3 percent in hourly wages. See Economic Forecast.
The rise in average hourly pay combined with the drop in job growth could
suggest that companies are running out of available workers and and
therefore bidding up wages in an effort to at least keep their own
workforce.
The department also revised August's job growth lower to 103,000 from the
previous estimate of 124,000. July's gains were revised higher to 373,000
from 338,000.
The weakness in payroll growth was widespread. Service-producing
industries lost 9,000 jobs, the first decline since March 1993. The
department said the hurricane probably cost about 45,000 jobs, so without
the hurricane, about 36,000 jobs would have been created, a far cry from
the 210,000 average over the past year.
Manufacturing continued to lose jobs, shedding 21,000 workers. The
manufacturing workweek was steady at 41.8 hours and 4.7 hours of
overtime. Construction added 21,000 workers.
Within services, retail trade lost 49,000 jobs, about half of them due to the
storm.
cbs.marketwatch.com
Message #42439 from Rarebird at Oct 8 1999 9:31AM
The Employment Report for September looks
very Bearish for Equities: Little Job Growth
( factoring in the Hurricane ) and a .5% rise in hourly earnings. Moreover, job
growth was revised downward in August. Wage Pressures are building as we speak. |
