Saturday, September 23, 2023

US nonfarm payrolls beat expectations

The S&P 500 rose nearly 1.0% on Friday after the Bureau of Labor Statistics said the US economy added more jobs than expected in May.

Key figures in the May jobs report

Non-farm payrolls rose by 339,000 last month, well above economists’ forecast of 190,000. Job growth in the United States has now been positive for 29 consecutive months.

However, unemployment rose to 3.7% in May, compared to the expectation of 3.5%. But LPL financial officers Adam Turnquist and Jeffrey Buchbinder also admit there are other reasons the benchmark could unlock more gains down the road.

During the 100th trading day (May 25), the S&P 500 gained 8.1%. If we look at a similarly strong start to the year, average gains for the rest of the year have been quite strong at 9.4%.

What else could boost the S&P 500?

Other notable data released today included average hourly earnings, which were reported 0.3% higher for the month, in line with expectations.

Compared to last year, that metric printed 4.3%, or 10 basis points below forecast. Explaining what else could contribute to the big gains in the S&P 500, LPL strategists said in a recent note obtained by Invezz:

US corporate earnings strength is stronger than anticipated, which could support stocks in the coming weeks, especially if the timeline for a possible mild recession continues to advance.

However, they agreed that risks remain, including poor dimensions; Most of the stock market’s strength this year has been attributed to just six mega-cap stocks.


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World Nation News Desk
World Nation News Desk
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