A McDonald’s restaurant in Miami Beach, Fla., is hiring signs right now, starting at $11 an hour.
Jeffrey Greenberg | Universal Image Group | Getty Images
This report is from today’s edition of CNBC’s Open Daily, our new international markets newsletter. The CNBC Daily Open keeps investors up-to-date with everything they need to know, no matter where they are. Like what you see?you can subscribe here.
what you need to know today
Moderate job growth
US non-farm payrolls data According to the Labor Department, 209,000 new jobs were added in June and the unemployment rate was 3.6%. While the unemployment rate was 0.1 percentage point lower than in May, job creation fell well short of the 240,000 economists expected.
But the market continues to decline
U.S. stocks fell on Friday despite data showing the U.S. economy added fewer jobs than expected. All major stock indexes are down for the week. In Europe, the benchmark Stoxx 600 index rose 0.1%. But shares in British financial services provider OSB Group fell 28.8% after it reported that its net profit would fall by as much as 180 million pounds ($230 million).
Restoring the stability of Sino-US relations
U.S. Treasury Secretary Janet Yellen wrapped up a four-day trip to China on Sunday. She said she had about 10 hours of “direct, substantive and fruitful” meetings with Chinese officials that would make U.S.-China relations “more solid.” She stressed that the world is “big enough” for the United States and China to thrive.
Elon Musk’s troubles
Last week was a tough one for the world’s richest man. Last year, Elon Musk’s lawyers sued the law firm representing Twitter when Musk tried to take Twitter private, alleging that the company’s $90 million bill was too high. Meanwhile, Meta’s Twitter competitor, Threads, gained 70 million registered users in a single day; Twitter’s lawyers accused Meta of stealing trade secrets to build Threads.
(PRO) Focus on Inflation
Now that the June jobs report is out, investors are turning their attention to Wednesday’s monthly consumer price index for an idea of how high interest rates will be. The big banks are also due to report second-quarter earnings later this week, which will paint a picture of how the U.S. economy is doing.
the bottom line
The US economy added 30,000 fewer jobs than expected in June. That doesn’t sound like a big deal.
But keep in mind that jobs reports have been beating expectations since February 2022.In a few cases, job creation was below the economists’ consensus — such as Last August or this March — and that number is only a few thousand off — was never five figures. Also, Thursday’s blowout jobs data has prompted investors to brace for another stronger-than-expected report from the Labor Department, according to ADP.
So: 50,000 fewer jobs than forecast is a big deal. This suggests that the labor market is cooling. But will it be enough for the Fed to keep rates steady at its upcoming meeting?
I suspect so. The unemployment rate edged down 0.1 percentage point to 3.6%, still near a 60-year low. Average hourly earnings rose 0.4% in June, and average hours worked per week rose 0.1 hours. These are all signs that the labor market is still fueling inflation.
“Overall, the job market is doing well,” Chicago Fed President Austan Goolsbee said on CNBC’s “Squawk on the Street.” But, Goolsbee added, it’s important , it is “returning to balanced, sustainable levels”.
However, markets remain concerned about the possible damage from rising interest rates.this S&P 500 Index down 0.29%, Nasdaq Composite Index down 0.13% Dow Jones Industrial Average down 0.55%. All major stock indexes are down for the week. For the week, the S&P lost 1.16%, the Nasdaq lost 0.92% and the Dow lost 1.96%, their worst weekly performance since March.
Whether the Fed will further tighten money flows after its July meeting depends on Wednesday’s June consumer price index. Investors are hoping it beats expectations in good fashion, like the June jobs report.
Clarification: This article has been updated to correct the number of new positions added in June.