U.S. stock futures were mixed despite strong job additions in July. The Department of Labor reported that
Non-farm Payrolls
in July came in at 943,000 compared to the consensus estimate of 854,000. Moreover, job additions in June were revised upward to 938,000 from 850,000 reported earlier.
July’s job additions came as a major relief to market participants after highly disappointing private-sector payroll data. Private payroll firm
ADP
(ADP) reported a mere 330,000 job additions by the economy in July, lagging more than half the consensus estimate.
Moreover, market watchers are also relieved that the spread of the highly-infectious Delta variant of the coronavirus failed to disrupt labor market recovery. Also, it seems that several states’ early termination of unemployment benefits may compel some workers to return to job market.
The
Unemployment Rate
dropped to 5.4% in July from 5.9% in June. The consensus estimate was 5.7%. However, despite strong job additions in July, the U.S. economy has to go a long way to reach the pre-pandemic level. Before, the release of July’s job data, in absolute terms, the employment shortage was nearly 6.8 million in June compared to the pre-pandemic level. Similarly, the unemployment rate in the pre-pandemic period was around 3.5%.
Average Hourly Wage Rate
increased 0.4% in July in line with the previous month’s upwardly revised data. The consensus estimate was an increase of 0.3%. Year over year, the wage rate increased 4% in July compared to 3.6% in June. This is because employers offer higher compensation packages to workers to come out from the labor shortage problem. Higher wage is primarily responsible for the current inflationary pressure in the U.S. economy.
The
Average workweek
for July was 34.8, in line with June’s upwardly revised data. The labor force participation rate remained flat at 61.7% in July. This metric is still 1.6% lower than the pre-pandemic level.
Meanwhile, earnings results were mostly weak today. Technology pioneer
Nuance Communications Inc.
NUAN
came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.18. The company posted revenues of $336.58 million, surpassing the Zacks Consensus Estimate by 0.65%.
To get more information on NUAN earnings, click here
.
Major electric power supplier
Dominion Energy Inc.
D
came out with quarterly earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.77. The company posted revenues of $3.04 billion, missing the Zacks Consensus Estimate by 7.72%.
For a detailed discussion on D earnings, click here
.
Leading digital sports entertainment and gaming company
DraftKings Inc.
DKNG
came out with a quarterly loss of $0.76 per share, higher-than the Zacks Consensus Estimate of a loss of $0.61. The top line came in at $297.61 million, beating the Zacks Consensus Estimate by 23.57%.
For knowing more on DKNG earnings, click here
.
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