U.S. stock index futures are pointing to a higher open on Monday following Friday’s strong U.S. jobs report for July from the U.S. Bureau of Labor Statistics that showed total non-farm employment rising by 209,000 and the U.S. unemployment rate declining to 4.3 percent from 4.4 percent, matching a 16 yr. old low reached in May.
Over the past 3 months, U.S. non-farm payroll job gains have averaged 195,000 per month.
Last Wednesday, private payroll processor ADP reported that the U.S. economy added 178,000 private sector jobs in July.
“The American job machine continues to operate in high gear. Job gains are broad-based across industries and company sizes, with only manufacturers reducing their payrolls” said Mark Zandi, chief economist of Moody’s Analytics in a released statement.
“At this pace of job growth, unemployment will continue to quickly decline” Zandi added.
U.N. Security Council Unanimously Adopts Sanctions Against North Korea
On Saturday the 15 nation U.N. Security Council strengthened its sanctions against the Democratic People’s Republic of Korea, condemning in resolute terms the country’s ballistic missile launches and solidifying its unanimous decision that Pyongyang “shall abandon all nuclear weapons and existing nuclear programmes in a complete, verifiable and irreversible manner.”
The Security Council determined that North Korea shall not supply, sell or transfer coal, iron, iron ore, lead, lead ore, and seafood to other countries which will reduce North Korea’s revenue by approximately $1 billion, one third of its exports and hard currency.
The Week Ahead
Corporate earnings season continues this week and investors will also be paying attention to 2 inflation reports due out later in the week to decide if inflation is rising closer to the Federal Reserve’s 2 percent inflation goal even with crude oil’s slide in recent weeks.
On Thursday the Producer Price Index (PPI) is due for July and on Friday the Consumer Price Index (CPI) is reported for July.
Monday- Consumer Credit (June)
Tuesday- Jolts Job Openings (June)
Wednesday- MBA Mortgage Applications, Productivity Costs, Wholesale Trade, Crude Oil- EIA Status Report
Thursday- Initial and Continuing Jobless Claims, PPI (July), Natural Gas report, Treasury Budget
Friday- CPI (July)
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