S&P500 -2.31% (3,426.96); NASDAQ -3.27% (11,313.13); DJIA -1.82% (28,133.31)
This week’s reports:
- August’s Unemployment Rate dropped to 8.4%, much lower than 9.8% expected, from July’s 10.2%. Non-Farm Payrolls rose 1.371M from July’s +1.734M. Labor Force Participation Rate rose to 61.7% from July’s 61.4%, it was expected to remain unchanged. One of the drivers of the decline in unemployment was the strong decrease in number of persons on temporary layoff.
- August’s Average Hourly Earnings rose 0.4% from July’s +0.1%. Average Weekly Hours rose to 34.6 from July’s 34.5.
- Q2 2020 Non-farm Productivity jumped 10.1% from Q1’s +7.3%, versus the expected increase of 7.5%. Unit Labor Costs rose 9.0%, less than expected 12.1%, from Q1’s +12.2%.
- August’s Markit Manufacturing PMI rose to 53.1 from July’s 50.9, marking the sharpest manufacturing growth since January 2019. Services PMI rose to 55 from July’s 50.0; its strongest expansion since March 2019. Composite PMI jumped to 54.6 from July’s 50.3, reflecting strongest expansion in business activity since March 2019.
- August’s ISM Manufacturing PMI rose to 56 from July’s 54.2, versus the expected increase to 54.5. ISM Services PMI fell to 56.9, as expected, from July’s 58.1.
- July’s Factory Orders jumped 6.4%, the same as in June.
- August’s Dallas Fed Manufacturing Index jumped to 8 from July’s reading of -3.
- Initial Jobless Claims for the week ending August 29th fell by 130K to 881K, versus the expected 950K. Continuing Jobless Claims for the week ending August 22nd dropped by 1.238M to 13.254M, versus the expectations of a decrease to 14M continuing claims.