U.S.Labor Data Signals Jobless Recovery, Syria Skepticism Persists

Nichole Harper
06 Sep, 2013
New York City

U.S. indexes advanced after choppy trading. U.S. employers added 169,000 net new jobs in August but June and July monthly increase were revised lower. Unemployment rate fell to 7.3%. World leaders are skeptical about the U.S. allegations and military strike preparations.

[R]4:15 PM New York – U.S. indexes advanced after choppy trading. U.S. employers added 169,000 net new jobs in August but June and July monthly increase were revised lower. Unemployment rate fell to 7.3%. World leaders are skeptical about the U.S. allegations and military strike preparations.[/R]

U.S. stocks rebounded after investors shook off early jitters linked to Syria attack talks and less than expected jobs growth in August.

In trading, S&P 500 index increased 1.28 to 1,656.31 and the Nasdaq Composite Index gained 3.47 to 3,662.35.

Unemployment Rate Falls as Base Shrinks

Employers at all levels added net new 169,000 jobs in August, the Labor Department said today in a report released in Washington.

The department revised the June net gains to 172,000 from 188,000 and July increased to 104,000 from 162,000.

In a separate report, the department said the unemployment rate declined to 7.3% and more people left the labor force.

In August, businesses added 152,000 jobs and government at all levels added 17,000.

Average work week increased to 34.5 hours and average hourly earnings increased 5 cents to $24.05.

The unemployment rate, including part-time workers who are looking for full-time jobs, decreased to 13.7% from 14%.

European Markets

European markets advanced after a two-day decline but Syria strike hovered on market sentiment.

Russia’s President Vladimir Putin reportedly said at G20 meeting of political leaders that his nation will support U.S. led military strike on Syria if chemical attack allegation were proven true.

However, several leaders of smaller European nations and Arab leaders expressed skepticism in private about the veracity of U.S. allegations.

However, the U.S. government is quiet about the Syrian rebel groups that are aided by the U.S. Central Intelligence Agency, several European nations, Qatar and Saudi Arabia have also been linked to barbaric actions and brutal killings of innocent civilians.

FTSE 100 index increased 0.2% to 6,547.33 and DAX 30 index added 0.5% to 8,275.67 and CAC 40 index in Paris soared 1.06% to 4,049.19.

U.S. Stocks in Review

American Tower ((AMT)) soared 4% after the largest operator of cellular towers agreed to acquire a closely held real estate investment trust that also controls Global Tower Partners for $3.3 billion.

Facebook, Inc ((FB)) gained 4% after the operator of largest personal networking service was recommended by Suntrust Robinson Humphrey Inc and lifted stock price target to $55 from $40.

Mattress Firm Holding Corp ((MFRM)) plunged 16% after the retailer lowered annual profit outlook and said same store sales in the quarter declined.

The mattress reported quarterly sales increased 15% and net income gained 5%.

Smith & Wesson Holding Corp declined 8% after the controversial maker of handgun estimated fiscal second quarter earnings not to exceed 22 cents a share.

Timken ((TKR)) gained 5% after the company agreed to spin off its steel unit under the pressure from investors and a shareholder vote.

Verifone Systems Inc ((PAY)) soared 10% after the credit card terminals maker estimated better than expected fourth-quarter sales of $418 million.