Yesterday, the market broke a four-day losing streak, as Wall Street was waiting for this morning’s jobs report. Despite much speculation, the Labor Department reported that unemployment rose to 9.7% compared to an estimate of 9.5%. However, the news wasn’t all bad, as U.S. employers cut a fewer-than-expected 216,000 jobs. The hike in the unemployment rate came from revisions the Labor Department did for June and July.
Initially, stock futures dropped on the news, but edged back up, as investors analyzed the data. The August unemployment rate of 9.7% is the highest since 1983.
Since the recession started in December of 2007, the U.S. economy has lost 6.9 million jobs. Many experts expect the jobless rate to get above 10%, possibly by the end of the year.
I still believe the market is at risk in the short-term. What’s more, we could see more downside after the Labor Day weekend, as trader’s return to work.
As always I wish you a happy and safe holiday weekend…
