Sharechat Logo

While you were sleeping: Eyes on US payrolls

Friday 1st April 2016

Text too small?

Wall Street traded steady to higher ahead of the US jobs report due on Friday, as investors try to gauge how cautiously the Federal Reserve might approach interest rate increases this year.

A Labor Department report showed that initial jobless claims increased by 11,000 to 276,000 in the week ended March 26. On Wednesday, an ADP Research Institute report showed US private payrolls rose by 200,000 in March, following a revised 205,000 increase the prior month.

“Claims remain at a level that is consistent with low rates of involuntary job separation and this report, similar to other labour market-related releases for March, points to no significant shift in labour market trends at the end of the first quarter,” John Ryding, chief economist at RDQ Economics in New York, told Reuters.

Friday’s report is expected to show nonfarm payrolls probably rose by 205,000 in March, after a gain of 242,000 in February, while the unemployment rate is expected to remain at an eight-year low of 4.9 percent.

In 1.22pm New York trading, the Dow Jones Industrial Average rose 0.11 percent, while the Nasdaq Composite Index gained 0.29 percent. In 1.06pm trading, the Standard & Poor’s 500 Index inched 0.08 percent higher.

“There’s a lot of anticipation around tomorrow’s jobs data,” Tim Ghriskey, managing director and chief investment officer at Solaris Asset Management in New York, told Bloomberg. “That’s keeping investors from either taking new positions or selling existing ones, at least so far. Traders often take a wait-and-see approach if they’ve already positioned themselves.”

The Dow rose, as gains in shares of IBM and those of American Express, up 2.7 percent and 1.8 percent respectively in early afternoon trading, outweighed losses in shares of Boeing and those of Intel, down 1 percent and 0.8 percent respectively.

Shares of McDonald's rose, last up 0.2 percent, after the company said it plans to add more than 1,500 restaurants in China, Hong Kong and South Korea over the next five years.

“Asia represents a significant area of opportunity for McDonald's to blend our global quality standards with local insights and expertise from partners who share our vision and values," said Steve Easterbrook, McDonald's CEO. “This will allow McDonald's to accelerate our growth and scale faster across diverse markets placing us closer to our customers and the communities we serve.”

China, Hong Kong, and Korea collectively represent more than 2,800 restaurant locations, the majority of which are currently company-owned, McDonald’s said.

In Europe, the Stoxx 600 Index ended the day with a 1.1 percent slide from the previous close. The index has shed 7.7 percent this quarter, according to Bloomberg.

On Thursday, the UK’s FTSE 100 Index fell 0.5 percent, Germany’s DAX Index slid 0.8 percent, while France’s CAC 40 Index dropped 1.3 percent.

 

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

RBNZ steps up BNZ supervision after capital calculation breaches
Beehive lobbied for revised StuffME deal
Ebos shares fall 9.5% as biggest shareholder sells at a discount
ComCom unmoved by warning on fibre investment in draft regime
BREAKING: Govt adds vital infrastructure to overseas investment test
Judges recommend changes to help Chinese litigants
Napier Port beats FY forecast; monitoring log export outlook
A2 shares surge on stronger margin outlook
A2 raises operating profit margin expectations
Arvida on track as first-half profit climbs 47%

IRG See IRG research reports