Stocks Rebound Thanks to Jobs Data, But Uncertainty Remains

Financial Markets Wall Street
AP/Richard Drew
LONDON -- Global stock markets recovered some recent lost ground Monday in the wake of last week's U.S. jobs data. However, questions remain about whether last week's sell-off in markets, which saw the Dow Jones industrial average slip into negative territory for the year, is over.

KEEPING SCORE: In early afternoon trading, France's CAC-40 rose 0.8 percent to 4,236 while Germany's DAX rose 0.2 percent to 9,230. Britain's FTSE 100 rose 0.5 percent to 6,711. Futures suggested a solid Wall Street rebound -- Dow futures were up 0.3 percent while the broader S&P 500 futures rose by the same rate too.

ANALYST TAKE: "Despite this slightly positive start to the week, there does appear to be a little caution in the markets," said Alpari analyst Craig Erlam. "Investors are a little concerned that the sell-off which started last week is not over and could lead to something much bigger."

U.S. JOBS: Friday's U.S. employment data helped calm the mood in markets. The figures showed the U.S. generated more than 200,000 jobs for a sixth straight month. At the same time, most economists don't think the pace of job growth is enough to cause the Federal Reserve to speed up its timetable for raising interest rates. Most still think the Fed will start raising rates to ward off inflation around mid-2015.

PORTUGUESE BANK BAILOUT: In Europe, the main piece of news was the announcement by Portugal's central bank late Sunday that it will provide 4.9 billion euros ($6.6 billion) in an emergency rescue to prevent the collapse of ailing bank Banco Espirito Santo, one of the country's biggest financial institutions.

ASIA'S DAY: China's Shanghai Composite Index jumped 1.7 percent and Hong Kong's Hang Seng gained 0.3 percent. South Korea's Kospi added 0.4 percent but Tokyo's Nikkei 225 ended down 0.3 percent at 15,474.50.

CURRENCIES, OIL: The currency markets were flat from last Friday's close, with the dollar steady at 102.57 yen and the euro flat at $1.3424. Benchmark U.S. crude for September delivery was down 31 cents at $97.57 per barrel.

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Jobs Data? what field? In this Global Trade and WTO era this won't get any better unless corporations bring back their manufacturing to US.

August 05 2014 at 1:55 AM Report abuse +1 rate up rate down Reply
1 reply to fakeconomics01's comment

How does any administration/congress bring back jobs that have been outsourced over seas? Why would corporations bring back jobs back to the US when they are going to have to pay much higher wages which means less profits. CEOs have been taking obscene bonus's from the profits of low wages, not passing it down to shareholders. Corporate America also has trillions of dollars overseas. We have the highest corporate taxes at 35%. Consequently American corporations have well over $2 trillion dollars overseas. Japan smartened up and lowered their taxes to keep that money in Japan. But not the U.S. What is wrong with this picture...

August 05 2014 at 3:28 AM Report abuse rate up rate down Reply

Thanks to the high corporate tax rates and the job killing trade deals, most Americans don't see the job boom.

August 04 2014 at 3:24 PM Report abuse -1 rate up rate down Reply

The rebound in jobs is a joke perpetrated on those who don't bother to read the BLS job data for now and for previous years.

You would need employment of over 171 million people today because it's not 2007, a 2007 yearlong average of 146 Miliion is 7 years old

August 04 2014 at 3:19 PM Report abuse -1 rate up rate down Reply
1 reply to Iselin007's comment

And if there was a Republican in office it would be because there is a Republican in office.

August 04 2014 at 6:19 PM Report abuse rate up rate down Reply

Dead Cat Bounce?

August 04 2014 at 1:51 PM Report abuse -1 rate up rate down Reply
1 reply to jdykbpl45's comment

The dow was at 6000 six years ago,that's one big bounce.

August 05 2014 at 3:00 AM Report abuse -1 rate up rate down Reply
worried man

The big players are ready to say "I fold" pick up their millions and walk away and look for another game.

August 04 2014 at 1:40 PM Report abuse -3 rate up rate down Reply

Uncertainty in the market?? When is there NOT uncertainty in the market?

August 04 2014 at 12:36 PM Report abuse +2 rate up rate down Reply

Most experts believe that roughly 300,000 jobs need to be created each month to cover new job market entries. Colarly, this is not happening.

Recent government data indicates that 2 out of every 3 new jobs is a part time job. That is-those people getting off the unemployment roster are likley UNDEREMNPLOYED.

The labor participation rate-the most meaningfull indicator of Americans available to work who are actually in the work force-is 63.3%-a full 3% lower than when Bush Jr. left. This stat is the lowest it has been since 1978, the Jimmy Carter era of Stagflation. In other words, there are fewer working Americans now than there have been in 36 years. And many of them are part time workers.

Another negative-the average family household income has declined by more than 5% sionce 2008. In otjher words, the middle class is being squeezed even more than before Obama took over.

And if you think that these indicators are negative, just wait until the Corporate Mandate for Obamacare kicks in. I have personally interviewed senior managemnent at four Fortune Five Hundred companies who employ 15,000 employees. They each concur that compliance with Obamacare will cost them $2,000/year per employee. They each have made plans to split the cost with their work force. They are also revisiting the prospect of employing part time employees to avoid the mandate altogether.

Pretty picture isn't it?

Why was the corporate manadate delayed from the end of 2014? Obama did it for clearly political purposes. How would you vote if you received a letter from your employer raising the cost of your annual premium $1,000/year or more right before the 2014 Congressional elections?

And if you want to be really scared, just contemplate when the Fed stops buying back its treasuries and interest rates begin to climb from their historic all time lows to more normal levels such as a 7-8% 30 year fixed mortgage rate versus a 4% rate.

This are unpleasant facts to comtemplate-especially if you are a Progressive. Nevertheless, they are facts.

August 04 2014 at 10:13 AM Report abuse +5 rate up rate down Reply
2 replies to shalebrook's comment

Read" Most experts". Interpretation: I made that up to support my position. Followed by more "facts". Poorly constructed arguments at best.

August 04 2014 at 11:09 AM Report abuse -2 rate up rate down Reply
1 reply to pgile's comment

Which you did nothing to disprove

August 04 2014 at 11:37 AM Report abuse +4 rate up rate down

The hidden population of people ( undocumented) has grown right along with the Civillian Non Institutional population of aged 16 and over. The math was never adjusted by the BLS for those factors.

It's unfair for the BLS to pick and choose which data they will use to determine the unemployment rate when they know the massive population seeking jobs is so great the unemployment rate would be nearer 18 + %.

August 04 2014 at 2:57 PM Report abuse -1 rate up rate down Reply

I have $ 5.00 bucks and waiting for the recovery! The banks are all still crooked and using unethical practices which the US refuses to fix. The news is bad and making everyone crazy. Ebola, war, Putin, Obama, Boener, millions of illegals invading, no money, inflation, class warfare, crooked politicians only working for votes at any cost, inner city unrest, no jobs !

The stock market needs to be fixed...old people are all going to starve to death

August 04 2014 at 10:06 AM Report abuse +3 rate up rate down Reply

It appears that conservatives are expecting a Bush era collapse of the stock market. from this President they despise. Just a hint here: Your hatred of our President won't necessarily convey that collapse you wish for.

August 04 2014 at 10:00 AM Report abuse -9 rate up rate down Reply
3 replies to opus1dog's comment

There is Five trillion setting on the sidelines waiting for a correction that hasn't happened since October of 2011. I'm one of them.

August 04 2014 at 9:55 AM Report abuse +2 rate up rate down Reply