This week's labor data starts with a JOLT
Nasdaq up ~0.3%, S&P 500 edges up, Dow just below flat
Cons disc leads S&P 500 sector gainers; healthcare weakest group
Euro STOXX 600 index down ~0.5%
Dollar, crude, gold slip; bitcoin off ~2%
U.S. 10-Year Treasury yield falls to ~4.43%
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THIS WEEK'S LABOR DATA STARTS WITH A JOLT
On Tuesday, investors were treated to the first bit of jobs data in a holiday-truncated week that's back-end loaded with the stuff.
The number of unfilled American jobs stumped analysts by growing 2.8% to 8.140 million in May, instead of easing to 7.910 million as expected.
The increase in unanswered worker demand appears to contradict signs of softening in the jobs market, which is considered by Powell & Co to be prerequisite to putting inflation on track for the Fed's 2% goal.
"As long as the job market is stable, the soft landing narrative appears likely as consumers will have some capacity to spend," writes Jeffrey Roach, chief economist at LPL Financial.
"However, a strong labor market will make the Fed’s job more difficult in their efforts to get inflation closer to their 2% target," Roach adds.
At any rate, the uptick in vacant jobs corresponds well with the National Federation of Independent Business' (NFIB) May report, in which an increased percentage of survey participants reported at least one open and hard-to-fill position:
The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) USJOLT=ECI, which tracks U.S. labor market churn, also showed hiring and firing ramping up, with the quit rate - viewed as a proxy indicator of consumer expectations - held firm.
More recent weekly continuing jobless claims data hints at the possibility that May's hiring increase might have been a glitch rather than a trend, and failed to carry over into June:
On Wednesday, in order to accommodate the July 4th holiday, a rush of indicators - including Challenger Gray, ADP and weekly jobless claims - are expected to set the stage for Friday's main event, the June employment report.
Analysts expect the U.S. economy added 190,000 jobs last month, marking a 30.1% deceleration from May's blowout 272,000.
That would mark the fifth month over the last 12 that payrolls increased by fewer than 200,000. Still, more often than not, payrolls surprise to the upside:
The unemployment rate is seen standing pat at 4%, while consensus calls for average hourly wages to cool down on both monthly and annual bases, to 0.3% and 3.9%, respectively.
(Stephen Culp)
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FOR TUESDAY'S EARLIER LIVE MARKETS POSTS:
WALL STREET NEAR FLAT AS POWELL SPEAKS - CLICK HERE
EQUITIES MAYBE A RISKY INVESTMENT AMID ELEVATED VALUATIONS, ELECTIONS - GOLDMAN SACHS - CLICK HERE
BENCHMARK TREASURY YIELD'S HEAD STILL ABOVE THE CLOUD - CLICK HERE
EUROPE'S INSURERS WEAK AS ATLANTIC HURRICANE SEASON KICKS OFF - CLICK HERE
Q2 U.S. EARNINGS GROWTH TO RISE 'INTO THE TEENS' - DB - CLICK HERE
INVESTOR POSITIONING IN EUROPE TURNS BEARISH - CLICK HERE
RBC GINGERLY LIFTS S&P 500 YEAR-END TARGET TO 5700 - CLICK HERE
THE PRICE IS RIGHT - CLICK HERE
CAGEY START FOR EUROPE - CLICK HERE
EUROPEAN EQUITY FUTURES RED - CLICK HERE
DECISION DAY FOR FAR RIGHT'S RIVALS - CLICK HERE
JOLT job openings and NFIB hard to fill positions https://reut.rs/3W4ME8Z
JOLTS quits and consumer expectations https://reut.rs/4cmOPKP
JOLTS hiring and continuing jobless claims https://reut.rs/3L9ls2D
Nonfarm payrolls https://reut.rs/3VQE9Nm
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