Disappointing Jobs Report Turns Stocks and ETFs Sour
January 8th at 10:00am by Tom Lydon
The United States lost more jobs than anticipated last month, putting the unemployment rate at a steady 10%. The news tempered hopes for a quick and smooth economic recovery.
One surprise emerging from the report is that 4,000 jobs were actually created in November, instead of the 11,000 that had been projected, reports The New York Times. A number of economists are optimistic that the labor market is on pace for job creation, pointing out that the number of jobs lost each quarter has been declining.
The slow rate of jobs growth has analysts saying that low rates continue to be warranted. Not only are fewer people working, but other problems are cited, including weak bank lending and cautious consumer spending, report Scott Lanman and Michael McKee for Bloomberg.
The jobless rate in the eurozone isn’t any better, hitting double digits in November for the first time since before the euro debuted, reports Mattew Saltmarsh for The New York Times. The highest unemployment rates were in Latvia (22.3%) and Spain (19.4%). The lowest rates are in the Netherlands (3.9%) and Austria (5.5%). iShares MSCI EMU (NYSEArca: EZU) is trading flat this morning. [For more stories about Europe's economy, visit our Europe category.]
Oil prices are hovering just below $83 a barrel, backing off 15-month highs from earlier in the week, reports Pablo Gorondi for the Associated Press. Monetary tightening in China and a strengthening dollar are helping keep oil prices where they are fo the time being. The United States Oil Fund (NYSEArca: USO) is down slightly this morning. [For more stories about oil, visit our oil category.]
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.