Lower Rise in Payroll Disappoints Market

123jump.com Staff
30 Nov, -0001
New York City

Less-than-the half rise in non-farm payroll for the previous week confused the market and oil price rise and end of the week has put several trades on the side lines. The markets remain on the defensive on almost all sectors as trading volume remain below average.

Stocks in the morning hours trading have been on gentle decline across all three averages. Shares of Apple are trading 2% lower on the news that the recent iPod battery related suite settlement may cost up to $100 million.

Non-farm employment edged up by 78,000 in May following a much larger increase in April, and the unemployment rate was essentially unchanged at 5.1 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Pay- roll employment continued to grow over the month in health care and construction, but was little changed in the other major industry sectors.

Both the number of unemployed persons, 7.6 million, and the unemployment rate, 5.1 percent, were essentially unchanged in May. The jobless rate was down from 5.6 percent a year earlier.

Over the month, the unemployment rates for adult men (4.4 percent), adult women (4.6 percent), teenagers (17.9 per-cent), whites (4.4 percent), blacks (10.1 percent), and Hispanics or Latinos (6.0 percent) showed little or no change. The jobless rate for Asians was 3.9 percent, not seasonally adjusted.

Oil prices and shares of oil companies moved higher on the projections of higher domestic energy demand in the fourth quarter. July crude oil futures traded up 0.49 cents and heating oil futures up 0.019 cents.

BHP Billiton, Anglo Australian mining company has acquired 55% gain in WMC Resources. The combined company will be second largest copper and third largest nickel producer and the largest holder of the known uranium resources.

Asian markets closed higher across the region with Mumbai and Taipei closing above 1%. Tokyo and HK average closed higher on the back of strength in the U.S. tech stocks. Semiconductor and liquid crystal display maker stocks in Taipei and Soul rallied. Mumbai shares rallied on the strength in Rupee, higher fund inflows and rumored family feud settlement for the largest listed company on the exchange.

Microsoft introduced low cost Windows XP version in India to broaden the market reach in emerging markets and attract first-time users.

U.S. dollar fell against euro in the early morning trading on news of non-farm payroll rose 78,000 vs. estimated rise of 187,000. The dollar has been on the rise for the last three weeks and still trades around eight-month high vs. euro.