Job Rate Improving

Really? This Reuter's article would have you believe that. The MSM must put that kind of spin on what the Obama Regime is doing. But take a close look at this article and you find that the huge increase in jobs, over 400,000, which sounds extremely positive, is actually an illusion. The are temporary government jobs with the Census Bureau which will end after a few months. These jobs would have a negative impact on our economy in the long run, because they produce nothing. The jobs that actually produce a fruitful long time impact to our economy come from the private sector and that actually took a loss as employers actually hired less people.
POTUS continues to push his Socialist policies down a resistant 'Free Market' economic system. He doesn't seem to be able to get a grasp on his job. It appears that reading pretty fantasy from a teleprompter will not be enough to be a leader. People are starting to wash the sand from their eyes and are realizing that this dream is actually a nightmare. The Stock Market might have done well on this news that day but it will surely continue it's drop when reality sets in.


Payrolls hit 10-year high on Census

Reuters

On Friday June 4, 2010, 8:38 am
By Lucia Mutikani

WASHINGTON (Reuters) - Nonfarm payrolls grew at their fastest pace in 10 years in May, buoyed by recruitment for the decennial census, but private hiring slowed sharply as businesses opted to increase hours rather than hire new workers.

The Labor Department said on Friday payrolls rose 431,000 as the government hired 411,000 workers to conduct the population count. That was the largest monthly increase since March 2000 and marked a fifth straight month of gains.

Private employment, a barometer of labor market strength, increased just 41,000 after rising 218,000 in April. Employers did increase hours, however, and the average workweek increased to 34.2 hours from 34.1 hours in April.

Payrolls data for March and April was revised to show 22,000 fewer jobs created than previously reported. May's hefty employment gain lowered the unemployment rate to 9.7 percent from 9.9 percent in April.

Analysts polled by Reuters had expected non-farm payrolls to rise 513,000 and private businesses to create 190,000 jobs. The jobless rate had been seen dipping to 9.8 percent.

The economy has now grown for three straight quarters and the recovery from the worst recession since the Great Depression of the 1930s is broadening out.

The jobless rate is a drag on President Barack Obama's popularity and could cost the Democratic Party dearly in November's congressional elections, with voters in an anti-incumbent and anti-Washington mood.

Unemployment will probably remain high through the year as the millions of people who lost their jobs during the recession seek work.

The firming jobs market may encourage those who dropped out of the labor force to resume their search, which could keep the jobless rate elevated because workers are counted as unemployed only if they are actively looking for work.

Outside the census, hiring slowed significantly from the prior months. The dominant services sector, saw payrolls increase 37,000 after surging 156,000 in April. The goods producing sector created only 4,000 new jobs following 62,000 jobs in April. This was as construction employment fell 35,000 after gaining 14,000 in April.

Recruitment for the population count saw government employment rising 390,000, overshadowing the drag from jobs cuts in cash-strapped states and localities.

Job growth is critical to sustain a rebound in consumer spending, especially now that recovery in Europe is under threat from government spending cuts to bring down huge budget deficits.

The debt crisis, stemming from Greece's fiscal problems, has hammered global stock markets, but analysts so far see a limited impact on the U.S. economy.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci) http://is.gd/cCmhP

Update:

It appears that I wasn't the only one that saw this coming. I'll admit that I have a laymans idea about the Stock market but I could see that these wiz-kids would be able to see what was clearly written. The final result Friday was a 323 point drop in the DOW.

Disappointing jobs report sends stocks sliding
Stock plunge to 4-month low on disappointing employment report and drop in euro; Dow falls 323

Associated Press

Stephen Bernard, AP Business Writer, On Friday June 4, 2010, 6:41 pm
NEW YORK (AP) -- Stocks fell to their lowest level in four months Friday after the government said hiring remains weak and another European country warned its economy was in trouble.

The Dow Jones industrial average dropped 323 points to close below 10,000. It was the lowest finish since February and the third-worst slide of the year.

Major indexes all lost more than 3 percent. The drop pushed the market back into what's called a "correction," or a decline of at least 10 percent from its April high.

Interest rates slid after traders shoveled money into the safety of Treasurys and the dollar.

Retailers were among the hardest-hit stocks after investors bet that a weak job market would discourage consumers from spending. Macy's fell 6.5 percent. Financial stocks also fell sharply on concerns that borrowers would continue having problems paying their bills. Banks were hurt by more worries about their exposure to Europe's debt crisis. American Express lost 5.3 percent.

The government's May jobs report came as an unpleasant surprise for investors who had grown a little more upbeat about the domestic economy the past few days. The Labor Department said private employers hired just 41,000 workers in May, down dramatically from 218,000 in April and the lowest number since January. The news made it clear that the economic recovery isn't yet picking up the momentum that investors have been looking for.

The government said 431,000 jobs overall were created last month, but most of those them, 411,000, came from government hiring of temporary census workers. The overall number also fell short of expectations. Economists polled by Thomson Reuters had forecast employers would add 513,000 jobs.

"People are looking for one turning point," Daniel Penrod, senior industry analyst for the California Credit Union League, said of the monthly jobs report. "That's not realistic. This growth will be much slower and more gradual than in the past."

The unemployment rate fell to 9.7 percent from 9.9 percent in April. That was slightly better than the 9.8 percent unemployment rate economists had forecast.

The jobs report was the latest during the week to signal that the economy isn't as robust as hoped.

"It's almost as if the worst fears of the market were realized, at least in this one report," said Richard Sparks, senior equities analyst at Schaeffer's Investment Research.

The slowdown in hiring last month cast more doubt on how much consumers will be able to pick up their spending. A day earlier, retailers reported sluggish sales for May. Stocks of clothing retailers were among the big losers after the jobs report as traders bet shoppers would stick to buying necessities.

Credit card companies and regional banks also fell sharply.

Meanwhile, the spokesman for Hungary's new prime minister described the country's economy as being in a "grave" situation. He also said his government is ready to avoid a crisis like the one being faced by Greece, which had to be bailed out by the European Union. Spain and Portugal are also struggling.

The Dow fell 323.31, or 3.2 percent, to 9,931.97, its steepest drop since May 20. All 30 stocks that make up the index fell.

It was the Dow's third drop of more than 300 points this year, all of which occurred in the last month. The Dow is now down 11.4 percent from its 2010 peak of 11,205, which it reached on April 26.

The Standard & Poor's 500 index fell 37.95, or 3.4 percent, to 1,064.88. The index is down 12.5 percent from its 2010 high.

The Nasdaq composite index dropped 83.86, or 3.6 percent, to 2,219.17. It's down 12.3 percent from its high of the year.

Fewer than 300 of the nearly 3,000 stocks that trade on the New York Stock Exchange rose. Consolidated volume came to 6.3 billion shares compared with 5 billion Thursday.

Only three of the stocks in the S&P 500 index rose: Cephalon Inc., Frontier Communications Corp. and People's United Financial Inc.

For the week, the Dow lost 2 percent, its third straight weekly drop. The S&P 500 index fell 2.3 percent and the Nasdaq dropped 1.7 percent.

Investors moved money into safe investments including Treasurys because of the weak employment report and the faltering euro. The yield on the 10-year Treasury note, which moves opposite its price, fell to 3.21 percent from 3.37 percent late Thursday. The yield on the 10-year note is often used as a benchmark for consumer loans and mortgages.

Analysts say there is little in the way of economic news that could shake the market from its funk.

"It's hard to see over the next month what will make stocks rally," said Paul Zemsky, head of asset allocation at ING Investment Management in New York. It might not be until next month's employment report that investors get the kind of positive news that could propel stocks higher, he said.

Investors are also worrying about the impact that Europe's economic problems could have on the U.S. During the past month, investors have been preoccupied with rising debts in Europe, fearing they could hobble the regional economy and eventually the U.S.

"The events in Hungary are reminding the market that the problems with sovereign debt are a lingering affair," said Nick Kalivas, vice president of financial research at MF Global in Chicago. He added that reminders of Europe's debt crisis will pop up on occasion and send stocks lower, in much the way that the market faltered early in the subprime mortgage crisis.

"Until there's a resolution, we're just going to kind of have to deal with it," Kalivas said.

A drop in the euro, the currency used by 16 countries in Europe, contributed to stocks' slide. The euro fell as low as $1.1956, a four-year low. Hungary doesn't use the euro but the drop the currency was a sign of flagging confidence in Europe's economy.

The euro has fallen more than 10 percent since stocks peaked six weeks ago.

Overseas, Britain's FTSE 100 fell 1.8 percent, Germany's DAX index fell 1.9 percent, and France's CAC-40 dropped 2.9 percent. All three indexes rose early in the day.

Among retail stocks, Macy's Inc. fell $1.46, or 6.5 percent, to $21.03. JCPenney Stores Co. fell $1.59, or 5.9 percent, to $25.48 and Liz Claiborne Inc. slid 63 cents, or 10.2 percent, to $5.55.

Credit card issuers also dropped. American Express Co. fell $2.13, or 5.3 percent, to $38.41. Discover Financial Services Inc. fell 66 cents, or 4.9 percent, to $12.86. Regional banks, considered vulnerable to failed loans, also fell sharply. Key Corp. dropped 40 cents, or 4.9 percent, to $7.77. Regions Financial Corp. lost 51 cents, or 6.7 percent, to $7.13.

Oil prices fell sharply as investors pulled out of commodities, which like stocks are seen as risky assets. Investors were also wondering whether demand might fall if the economy is weaker than expected. Benchmark crude dropped $3.10 to $71.51 a barrel on the New York Mercantile Exchange.

The Russell 2000 index of smaller stocks fell 33.40, or 5 percent, to 633.97.

AP Business Writer Tim Paradis in New York contributed to this report.
http://is.gd/cCX2q