Friday, August 2, 2019
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WHAT TO WATCH
The U.S. Bureau of Labor Statistics releases its July jobs report at 8:30 a.m. ET. Investors widely expect the print to show a domestic labor market that has remained resilient despite encroaching global economic threats.
Here are the key figures consensus economists are expecting from the report, according to Bloomberg-compiled data:
Change in non-farm payrolls: +165,000, vs. +224,000 prior
Unemployment rate: 3.6%, vs. 3.7% prior
Average hourly earnings MoM: 0.2%, vs. 0.2% prior
Average hourly earnings YoY: 3.1%, vs. 3.1% prior
Labor force participation rate: 62.9%, vs. 62.9% prior
Consensus economists expect that headline non-farm payrolls moderated somewhat from June’s 224,000 gain – a pace economists including Nomura’s Lewis Alexander called “likely unsustainable.” June’s jobs report brought the three-month average for non-farm payroll gains to just over 170,000.
The unemployment rate is expected to have edged down to 3.6% in July, coming in at the same level as in April and May and marking the lowest jobless rate since 1969. Such a result would also mark the 17th straight month of an unemployment rate at or below 4%.
China pledges countermeasures after Trump move: Beijing pledged to respond if the U.S. insists on adding extra tariffs to the remainder of Chinese imports, after President Donald Trump’s abrupt escalation of the trade war. Trump announced Thursday that he would impose a 10% tariff on a further $300 billion in Chinese imports, a move set to hit American consumers more directly than any other in his trade wars so far. [Bloomberg]
The FBI is calling conspiracy theories a terrorism threat — Here's what that means for Facebook, others: The FBI has pegged “conspiracy theory-driven domestic extremists” as a burgeoning terrorist threat for the U.S., raising questions about the legal implications for websites where fringe groups sow those conspiracies. These theories could have spread as rampantly as they did without the internet — specifically, Google’s (GOOG, GOOGL) YouTube, Facebook (FB), Reddit, and Twitter (TWTR). Now that the FBI is officially calling fringe theories that spread on these platforms a terrorist threat, do these sites have to worry about the FBI or state prosecutors coming after them? [Yahoo Finance]
WeWork seeks $6B financing, contingent on IPO: WeWork Cos. is setting up $6 billion in financing to pursue its global ambitions, but there’s an unusual catch: It must first succeed in its initial public offering next month. The company has been meeting with analysts this week, outlining its business and plans for expansion as it prepares for a stock-market debut. [Bloomberg]
Lowe's cuts store jobs as it seeks to outsource workers: Lowe's Cos. (LOW) is laying off thousands of employees at its U.S. stores as it outsources some of their duties to outside companies. The home-improvement chain, based in Mooresville, North Carolina, declined to say exactly how many employees were affected. [Associated Press]
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