U.S. jobs report misses expectations, Wall Street falls

U.S. jobs report misses expectations, Wall Street falls

In July, a report from ADP showed that 330,000 private sector jobs were added, almost half of the number expected by economists, with growth expected. The latest ADP report claims that bottlenecks in hiring continue to hold back labor market. Reserve Policy makers have said the recovery of the labor market is a key factor in monetary policy decisions.

The disappointing jobs data weighed on Wall Street. The index gave back 0.5% to 4,402. 66 on Tuesday and set an all-time high a day earlier.


Dow Jones Industrial Average dropped 0.9% to 34,792 67. However, the Nasdaq Composite added 0.1% to 14,780. 53. Both Dow and Nasdaq hit all time highs last week.

High earnings were not enough to lift stocks for many companies. General Motors fell 8.9% despite beating analysts' profit expectations and raising its forecast. CVS Health has lost 2.9% after reporting solid results.

Online broker Robinhood, which made its market debut last week, surged by 50.4%. Market experts cautioned that the stock could be in for a teasing ride because of its popularity among smaller investors.

The payroll processor ADP announced on Wednesday that the U.S. private sector added 330,000 jobs in July, which fell short of analysts' expectations.

The U.S. Labor Department will release a more comprehensive jobs report on Friday. Economists are projecting that U.S. employers added 700,000 jobs in July, bringing the national unemployment rate from 5.7% to 5.9%, according to FactSet.

The ADP report missed expectations by a wide margin, Yeap Jun Rong of IG said.

Although there has been no clear correlation between ADP data and the non-farm payrolls, the slowdown in hiring in leisure and hospitality sectors seems to draw some concern on the increasing virus cases in July bringing about some impact, he said.

In Asian stock markets, meanwhile, U.S. stocks were mixed Thursday as traders waited for more guidance on the economic recovery.

The NikkeiNikkei 225 closed in Tokyo at 28.728 0.5% higher than the previous high level. The Hong Kong Kospi lost 0.1% to 3,277. 94, while the Hague Hang Seng declined 1% to 23,152. 20 in afternoon trading.

The Shanghai Composite index fell 0.3% to 3,465. 89. Sydney's S&P ASX 200 gained 0.1% to 7,511. 10. Shares rose in Singapore but tumbled in Malaysia and Indonesia.

China has suspended residential communities, sealed flights and trains, and ordered mass coronavirus testing in Wuhan, the city where the disease was first detected in late 2019. Although China's numbers are small compared to outbreaks elsewhere, its containment strategies and the following impact on its large economy are being closely monitored.

In the electronic trading market, benchmark U.S. crude lost 13 cents to $68.02 per barrel in the New York Mercantile Exchange. Brent crude, the price basis for international oil, gave up 28 cents to $70.10 per barrel in London.

The U.S. dollar rose to 109,74 US yen from 109.47 yen on Wednesday. The euro retreated to $1.1832 from $1.1843.