People walk through the Manhattan Mall on July 5, 2024 in New York City.
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This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Recruitment is declining
private sector company According to payroll firm ADP, 99,000 workers were hired in August. This is the lowest number in three and a half years and well below expectations of 140,000. ADP’s wage report often differs from the Labor Department’s official employment data, but July’s figure differed by only 8,000.
The market continues to fall
U.S. markets were mixed on Thursday. this Nasdaq Index It was the only major index to eke out a gain, but still gave back some of its gains from earlier in the day. The Stoxx 600 Index in Europe fell 0.54%. It was the fourth straight day of losses, a reversal of fortunes after Friday’s close at a record high.
50 or 25, that is the question
The Fed should cut interest rates by 50 basis points at its September meeting. JPMorgan Chase Chief U.S. economist Michael Feroli told CNBC. This way the Fed can strike a balance between full employment and stable inflation. On the other hand, Forvis Mazars chief economist George Lagarias believes that a 50 basis point interest rate cut “would be very dangerous.”
turn off the tap
Oil prices have been falling over the past few days. Perhaps in response, OPEC+ members have decided to delay oil production increases for two months, according to two anonymous OPEC+ sources. West Texas Intermediate crude oil October futures rose 0.23% on Thursday, but were at $69.31 a barrel, still below levels at the beginning of the year.
(PRO) Nvidia, a cheap stock?
NVIDIA Market value lost $279 billion on Tuesday alone, and the decline continued on Wednesday. That may have triggered panic among investors, but Bank of America believes the drop in Nvidia’s stock price makes it an excellent buying opportunity. On a price-to-earnings basis, the stock is actually its cheapest in five years.
bottom line
Although it can be difficult to show dignity and respect at work, work can give us money. And everyone loves money. So, everyone likes to work more or less.
So it’s a very bad thing when people want to work but there aren’t enough jobs. If there are no jobs, people have no money. No money means less spending in the economy, which reduces profits for companies, which means they will hire less, which means fewer jobs.
On Thursday, ADP reported that U.S. private employment rose by just 99,000 jobs in August, the first time it fell below six digits since January 2021 and 41,000 fewer than expected. This is not a good sign for the U.S. economy. Worse, it happens after The July jobs report was dismal, triggering panic selling last month.
While not as sickly as that Monday in August, the market was mostly down on the ADP report. this S&P 500 Index Down 0.3% Dow Jones Industrial Average down 0.54%. However, the Nasdaq rose 0.25%, driven by a 4.9% rise in Tesla shares.
Losses may have eased as labor market data was mixed. Initial jobless claims came in at just 227,000 for the week ended Aug. 31, below the Dow Jones consensus forecast and the previous week’s claims.
This seems to contradict the negative news about the job market. But in fact, it corroborates ADP data, which shows that despite a hiring slowdown, only a handful of industries are shedding jobs.
Therefore, we may want to refine our previous statements. It’s nice to have a job. It sucks to be looking for a job and not be able to find one. Losing the job you once had is probably the worst thing that can happen.
The US Department of Labor will release the August employment report later today US time. Be careful when digesting this: it will show whether we are in a state of slowing recruiting or increasing firings.
–CNBC’s Jeff Cox, Jesse Pound and Samantha Subin contributed to this report.
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