Jobs data: Key reports investors are eyeing this week

Investors are on high alert this week as crucial employment data is set to be released. The ADP report and the Labor Department’s June employment figures are poised to provide fresh insights into the current state of the job market.

Yahoo Finance anchor Josh Lipton joins Wealth! to summarize what is expected from these upcoming reports.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Angel Smith

Video Transcript

We will be getting some brand new jobs numbers that could actually give us a better picture on the state of the economy.

For more we bring in our own Josh lift in who’s been tracking all things, employment situation.

Hey, Josh Brad, good to see you.

So you’re right.

It’s a holiday shortened trading week here, but we still do have some important economic data to consider.

Remember last week we got the University of Michigan’s Consumer Sentiment Index.

The final reading was 68.2 in June strategist, Peter Far notes that was down from May in the lowest since November, but better than the initial June print.

So Bucar says positive though still weak turning to this week.

Now we’re gonna get a window into the labor market with AD P on Wednesday, us private employers are expected to have hired 100 and 58,000 workers last month.

Of course, that report is published ahead of the labor department’s more closely monitored employment report coming out on Friday morning.

The all important monthly non farm payrolls data for June.

Economists expect the report to show that 100 and 90,000 non farm payroll jobs were added last month per Bloomberg with unemployment holding steady at 4%.

Remember that in May, the US economy added 272,000 jobs added up an economist.

See a labor market that is cooled but isn’t cold in their words.

So the question now, what next as Nick Tiros of the Wall Street Journal puts it is the labor market in a sustainable equilibrium where unemployment settles at around 4% or he asks, keep softening, resulting in recession as historically has occurred when unemployment rises much more than it already has.

Economists of course, have different takes.

A more optimistic view comes from Edgard Denny who tells clients that he is not concerned about our labor market, emphasizing that private payroll employment is driven by corporate profits.

And as he points out in this chart, the S and P 500 forward earnings continues to rise to record highs.

Bottom line.

Doctor Ed says profitable companies tend to expand their payrolls.

But a cooling labor market coupled with signs that inflation is moving in the right direction have implications for the Federal Reserve.

Story continues

Of course, markets currently assigning a nearly 62% probability of a rate cut in September with a cooler jobs report on Friday morning.

Give our central bankers greater confidence to make that move.

Investors are going to be watching Brad back to you.

All right, thanks so much.

Excellent breakdown.

Some key data that we’re gonna be tracking even during this holiday, abbreviated trading week, Josh, thanks so much.

You got it.