The U.S. Department of Labor’s Bureau of Labor Statistics reported that nonfarm U.S. payrolls increased by 171,000 jobs in October, far above economists’ forecast for 125,000 new jobs. In a separate survey, the unemployment rate ticked up to 7.9%.
In addition to October’s numbers, both August and September saw significant revisions, with the August number bumped higher by 50,000 jobs and September was 34,000 higher than originally reported.
Hiring was widespread throughout the economy, with private sector payrolls up by 184,000 last month. Unlike last month, government jobs decreased by 13,000 in October.
The size of the labor force grew by 578,000 workers in October, with the labor...
Read moreComments are closed U.S. Economy Grew at 2% Rate in 3rd Quarter
The United States economy grew at an annual rate of 2 percent in the third quarter, slightly better than expected, with help from a healthier housing sector and a pickup in defense spending. But economists warn that growth could slow in the final quarter of the year if weakness in exports persists and businesses remain cautious because of fiscal uncertainty in Washington.
The new figure, released by the Commerce Department on Friday, is the government’s first estimate of growth in the third quarter. It compares with the 1.3 percent pace of growth in the second quarter. In the first quarter of 2012, the economy...
Read moreComments are closed U.S. jobless claims fall to lowest in four and a half years
The number of Americans filing new claims for unemployment benefits fell sharply last week to the lowest level in more than four and a half years, according to government data on Thursday that suggested improvement in the labor market.
The news could help President Barack Obama in his tight race for re-election on November 6 against Republican challenger Mitt Romney, who says Obama has mishandled the economy.
But a second report released on Thursday hinted at weaker U.S. and global demand. The U.S. trade deficit widened in August to $44.2 billion, as U.S. goods exports fell for the fifth consecutive month and imports declined fractionally.
Initial claims for state...
Read moreComments are closed September Jobs Report: Unemployment Rate Tumbles
Friday's monthly jobs report changed the picture of the U.S. economy in more ways than one, showing the unemployment rate fell to the lowest level in more than three years and hiring was stronger than originally reported throughout the summer.
Unemployment unexpectedly fell to 7.8% in September, down from 8.1%, as a survey of U.S. households showed 873,000 more Americans had jobs compared to a month earlier.
The last time the unemployment rate was that low was in January 2009, the month President Obama was inaugurated.
A separate survey of employers, considered the key metric that Wall Street watches, showed businesses added 114,000 jobs in September. It marked a...
Read moreComments are closed Stocks Down for the Day but Up for the Quarter
Wall Street stocks were mostly lower on Friday, pulled down by disappointing economic data, but the market posted its best third quarter since 2010 after a recent wave of central bank actions set off a recovery in equities in the last few months.
Despite Friday’s losses, the Standard & Poor’s 500-stock index advanced 5.8 percent over the last three months, mainly on expectations that central banks around the world would take steps to stimulate their economies. That brought the benchmark index’s advance so far this year to 14.6 percent.
For the third quarter, the Dow Jones industrial average rose 4.3 percent and the Nasdaq composite index 6.2 percent.
On...
Read moreComments are closed Mortgage Rates at Record Low Again
Mortgage rates fell to record low levels once again last week, as the Federal Reserve's decision to buy billions in home loans for the foreseeable future helped bring lending costs down for home buyers and owners.
Mortgage finance backer Freddie Mac's weekly survey of mortgage rates showed the average 30-year fixed-rate mortgage fell to 3.49% from 3.55% the previous week. That matched the previous record low set in July. The fixed-rate 15-year mortgage reached a new record low of 2.77%, down from 2.85% a week earlier.
The Fed announced last Thursday that it would be buying $40 billion in mortgage-backed securities each month for the foreseeable future. The idea of...
Read moreComments are closed Hiring Slows in August, Adding to Pressure on Fed and Obama
Job growth slowed substantially in August, increasing the political pressure on the White House and strengthening the argument for new action by Federal Reserve policy makers to stimulate the economy when they meet next week.
The economy added a total of 96,000 jobs in August, down from a revised figure of 141,000 in July and well below the 125,000 level economists had been expecting.
The latest figures confirm suspicions that the economy has been treading water recently — over the last six months, monthly job growth has averaged 97,000, typically not enough to absorb new entrants into the labor force, let alone reduce the unemployment rate.
For August, the...
Read moreComments are closed Stocks End at Multi-Year Highs, Fueled by ECB
Stocks surged across the board to finish at multi-year highs Thursday, propelled by a batch of upbeat economic reports and after ECB President Mario Draghi said the central bank agreed on a new bond-buying program.
The Dow Jones Industrial Average surged 244.52 points, or 1.87 percent, to close at 13,292.00, logging its best close since December 2007. Cisco and BofA led the blue-chip gainers.
The S&P 500 soared 28.68 points, or 2.04 percent, to end at 1,432.12, posting its highest finish since January 2008. The Nasdaq jumped 66.54 points, or 2.17 percent, to finish at 3,135.81, logging its best close in 12 years.
The CBOE Volatility Index, widely considered the best gauge of fear in... Consumer Sentiment in U.S. Rose to Three-Month High
Consumer confidence improved more than projected in August as merchant discounts and record-low interest rates help U.S. households bolster finances.
The Thomson Reuters/University of Michigan final sentiment index climbed to 74.3, a three-month high, from 72.3 in July. The gauge averaged 89 in the five years leading up to the recession. Other reports indicated manufacturing is cooling.
Incentives by companies such as General Motors Co. (GM) are boosting sales, just as Federal Reserve efforts to lower borrowing costs are allowing Americans to reduce debt, which may underpin consumer spending. Nonetheless, Fed Chairman...
Read moreComments are closed Fearing an Impasse in Congress, Industry Cuts Spending
A rising number of manufacturers are canceling new investments and putting off new hires because they fear paralysis in Washington will force hundreds of billions in tax increases and budget cuts in January, undermining economic growth in the coming months.
Executives at companies making everything from electrical components and power systems to automotive parts say the fiscal stalemate is prompting them to pull back now, rather than wait for a possible resolution to the deadlock on Capitol Hill.
Democrats and Republicans are far apart on how to extend the Bush-era tax breaks beyond January — the same month automatic spending reductions are set to take effect —...
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