U.S. labor data send mixed signals as May openings rise and weak jobs data lifts stocks
May job openings beat forecasts while June payroll growth disappointed and unemployment fell to 4.2%, lifting U.S. stock-index futures and the cash open as markets pushed expected Fed tightening to December from October.
Recent U.S. economic data sent mixed signals for markets. The Labor Department’s May JOLTS report showed 7.594 million job openings, above expectations for 7.3 million and slightly above a revised 7.585 million in April, while the hiring rate was unchanged at 3.3% and about 5.2 million Americans took new jobs. The Conference Board said its June consumer confidence index rose to 91.2 from a downwardly revised 90.6 in May, but missed economists’ 94.2 forecast. Fresh labor data then showed June nonfarm payrolls rose 57,000 versus 110,000 expected, while the unemployment rate unexpectedly fell to 4.2%. The softer jobs data lifted U.S. stocks, with futures and the cash open for the Dow, S&P 500 and Nasdaq moving higher, Treasury yields falling, and markets pushing expected Federal Reserve tightening back to December from October. The figures suggested steady labor demand but weaker hiring momentum, leaving rate expectations sensitive to incoming inflation and labor-market data.
- JOLTS: The U.S. Job Openings and Labor Turnover Survey, a monthly report on job openings, hiring and separations.
- Nonfarm payrolls: A closely watched U.S. measure of monthly job growth outside the farm sector.
- Treasury yields: The returns on U.S. government bonds, which often move with expectations for growth, inflation and Federal Reserve policy.