Rob Black's "Winners & Losers" June 1 - Bad Market Day & U.S. Jobs Engine Sputtered

By: Rob Black - Fri, 01 Jun 2012 18:20:09 -0800

Loser:  Dow Erases 2012 Advance After Jobs  Data

Stocks erased the Dow Jones Industrial Average’s 2012 advance, as American employers added the fewest workers in a year and reports signaled global manufacturing was slowing.

All 10 groups in the Standard & Poor’s 500 Index retreated as the gauge extended a drop from its April high to 9.9 percent.

The weak jobs report confirms that the U.S. is vulnerable to a European situation that is going from bad to worse.

The unemployment crisis  is getting more stubbornly embedded in the structure of the economy.
Looking forward, the employment situation will be further challenged by an ongoing synchronized global slowing.

 Facebook  fell 6.4 percent to $27.72, after yesterday posting the biggest gain since its initial public offering.

Gold producers jumped as signs of weakening job growth in the U.S. fueled expectations that the Fed will take further steps to spur growth, boosting the appeal of the precious metal as an inflation hedge

The Fed is more likely to provide added stimulus when its current effort winds down. The probability of more central bank policy action is 80 percent, up from 50 percent,

Loser:  Americans Jobs Engine Sputtered
The American jobs engine sputtered in May as employers added the fewest workers in a year and the unemployment rate rose.

Payrolls climbed by 69,000 last month, less than the most-pessimistic forecast. Thet median projection called for a 150,000 May advance.

April payrolls were revised lower to a 77,000 gain in April.  The jobless rate rose to 8.2 percent from 8.1 percent.

The picture is getting more worrisome. The U.S. economy is going to be somewhat softer over the next couple of quarters.”

The number of people unemployed for 27 weeks or more rose as a percentage of all jobless, to 42.8 percent from 41.3 percent.

The U.S. economy is recovering but at a stubbornly slow pace.

Income growth also slowed. Americans’ average hourly earnings were 1.7 percent higher than a year earlier.

At the same time, they worked 34.4 hours a week on average, six minutes less than the month before.
The so-called unemployment rate  -- which includes part-time workers who’d prefer a full-time position and people who want work but have given up looking -- increased to 14.8 percent from 14.5 percent.
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