US Private Employment Rises By 122,000 In July, Misses Estimates: 'If Inflation Goes Back Up, It Won't Be Because Of Labor'
Portfolio Pulse from Piero Cingari
US private employment rose by 122,000 in July, missing estimates and indicating a cooling labor market. The ADP National Employment Report showed the lowest job creation since January 2024. The U.S. Dollar Index fell, Treasury yields softened, and gold prices rose. Microsoft shares dropped 3% premarket, while AMD shares rallied over 7%.
July 31, 2024 | 12:28 pm
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POSITIVE IMPACT
AMD shares rallied over 7% premarket, indicating strong investor confidence despite the broader market's mixed reactions to employment data.
The significant premarket rally in AMD shares suggests strong investor confidence, possibly driven by positive company-specific news or broader sector trends.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
Gold prices, tracked by the SPDR Gold Trust, rose 0.4% as investors sought safe-haven assets following the disappointing employment data.
Disappointing employment data often leads investors to seek safe-haven assets like gold, driving up its price.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Microsoft shares traded 3% lower premarket as growth in its business cloud segment softened, despite stronger-than-expected earnings.
Investors reacted negatively to the softer growth in Microsoft's business cloud segment, overshadowing the strong earnings report.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
The U.S. Dollar Index, tracked by the Invesco DB USD Index Bullish Fund ETF, fell 0.4% following the weaker-than-expected employment report.
The weaker-than-expected employment report suggests a cooling labor market, which can lead to a weaker dollar as it may influence the Federal Reserve's monetary policy decisions.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80