The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Wednesday, July 2, 2014

June Jobs Report And Anticipation Of GOP "Scandal" Deflection

QZ Dot Com is reporting favorable June 2014 economic data with indications of an improving economy. News that has to set a flame under America's conservatives, especially the RNC, GOP and its election operatives. We can anticipate heightened levels of "scandal chasing " from the GOP through the month of July. The most effective way to drown-out good economic news is to scream "scandal, scandal, scandal" while following The Drudge Report and Fox News leadership. The GOP, RNC and GOP congressionals follow their leaders as well as any fabled Pied Piper.

QZ Dot Com June job related indicators

Manufacturing employment

The ISM gauge of factory employment stayed above 50, the line that separates expansion from contraction. That indicates ongoing job growth in the cyclical industrial sector, which is watched as proxy for the broader economy.

Private sector surge

The payroll-processing company ADP’s monthly report on private sector job creation showed the strongest pace of new employment seen since November 2012.

Online job ads

The private research group known as the Conference Board has seen a fresh surge in its tally of new online job advertisements, a good sign of increased labor demand.

The US economy added 281,000 Private sector jobs last month. The increase in private sector payroll additions was the largest increase since November 2012 exceeding the May jobs report by 102,000 jobs and exceeding economist's forecasts by 81,000 jobs. 

The following graphic provides visual perspective of job development over the one year period of January 2013 through June 2014. 

It doesn't take an economist to see the harsh winter of 2013/13 slowed job growth with a marked decreased in growth in January of this year.

Yahoo News published an early morning report in anticipation of the Dow breaking the 17,000 mark for the first time in Dow Jones Industrial Average (DIJA) history. While the Dow closed 24 points shy of 17,000, the Yahoo report was a welcome (with morning over coffee report.)

The Dow Jones Industrial is setting the stage to hit the milestone 17,000 mark in Wednesday's trading. Data from employment to housing is fueling confidence the U.S. economy is rebounding. This morning's ADP report showed private-sector hiring increased in June. The ADP report is out ahead of the June jobs report which will be released by the labor department on Thursday because of the shortened holiday trading week Shares of JPMorgan (JPM) will be watched closely today after the bank's CEO Jamie Dimon disclosed he has a curable throat cancer and will begin an 8-week treatment plan. The most powerful women in global finance, Fed Chair Janet Yellen and IMF Managing Director Christine Lagarde take the stage together for the first time today. TheStreet's Susannah Lee has the details. 

The DIJA will break 17,000 this week, even briefly before falling back below the historic mark. As the week progresses we can also anticipate major fronts from the Right to cover the economic news like hiding a pile of dirt under the nearest rug as guests ring your door bell.

While we do not yet have a report regarding the June unemployment rate, we can rest assured the RNC, GOP and Republicans in congress are in deep discussion of a "Poo-Poo" response to cover an unemployment rate that could draw near 6.0% vs the current 6.3 percent.  It is safe to assume the rate will not drop enough to break the 6.0% level, yet the thought of a major GOP butt-pucker at 5.9% would surely register on the Richter Scale. 

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