U.S. stock index futures are adding to gains after a better-than-expected increase in new jobs in July. While stronger than anticipated, the jobs report may still leave open the door for additional stimulus from the Federal Reserve.
Non-farm payrolls increased by a seasonally adjusted 163,000 jobs in July, after a downwardly revised 64,000 increase in June. The unemployment rate stood at 8.3 percent, up from 8.2 percent in June. This was the 42nd consecutive month of unemployment above 8 percent. Economists had been looking for the creation of about 100,000 new jobs in the month with the unemployment rate holding steady. July average hourly earnings increased 0.1 percent versus a June increase of 0.3 percent.
"The upside surprise in the July jobs report will have an immediate impact on stocks and confidence," said Todd Schoenberger, managing principal at The BlackBay Group. "It also reinforces the non-action by the Fed this week as it buys Bernanke and company time to implement a shock-and-awe monetary policy program. However, sustainable growth in jobs in the coming months will help keep such action on the shelf. Wall Street will applaud this report."Page 1 of 4 | Next Page