Wall Street is trading with falls this Friday, led by the Nasdaqafter the mixed sign on Thursday and with our eyes set on the official employment report of August, which seems decisive for the evolution of the monetary policy of the Federal Reserve (Fed) and the direction of the market. In the weekly computationwith the current session still to come, the New York indices are on track to end a bearish week, in which the Nasdaq 3.3% is left, S&P 500 2.6% and the Dow Jones 1.9%. Overall, the latest macro data support the idea of a First rate cut by the Federal Reserve (Fed) next September 18th. The question is whether it will be 25 basis points or 50. Therefore, all attention has been focused on the employmentThe report released this Friday has once again fallen short of expectations, with the 142,000 jobs were created in August, while the consensus expected 160,000. In addition, the July figure has been revised downwards from 114,000 to 89,000. When analysing this data, Michael Brownsenior research strategist at Pepperstone, says that «The US labor market report for August presented a somewhat mixed picture of the employment situation«as while job creation surprised on the downside, «on a more positive note, Unemployment fell to 4.2%as a temporary degree of weather-related weakness reversed in July, while participation remained unchanged at 62.7%, just below cycle highs.» «All this does little to clarify the debate over the September Federal Reserve meeting. Doves will point to a cooling pace of overall payrolls growth as a possible rationale for a 50 basis point cut. Meanwhile, hawks will reasonably point to the lack of further cooling compared to the July report and rapid earnings growth as reasons to start the normalization cycle with a more modest 25 basis point move,» he details. For his part, Naeem Aslamchief investment officer at Zaye Capital Markets, notes that «the employment report reveals two key findings: The Federal Reserve has not made any policy mistakes and the labor market is not collapsing«. «As the data shows a stronger labor market and a drop in the unemployment rate, The Fed's task is clear: stay on course and let the numbers speak for themselves.«, he considers. It should be remembered that the Private employment survey prepared by the consulting firm ADP showed this Thursday the creation of 99,000 new jobs during the eighth month of the year, well below the 144,000 expected and the 111,000 in July. The figures were also announced weekly unemployment datawhich fell more than expected (227,000 applications). In this regard, it should be noted that investors are closely monitoring the evolution of the US labor market, a market that has been cooling down in recent months. This fact is worrying, since it could be the prelude to a significant slowdown in the country's economic growth and even of the entry into recession of the country's economy.
COMPANIES AND OTHER MARKETS
On the business level, Broadcom falls sharply in the session after not convincing the market with its forecasts of the fourth fiscal quarter. On the other hand, Salesforce will buy the data security startup Own by 1.9 billion dollars. In other markets, oil West Texas down 0.04% ($69.12) and the Brent yields 0.05% ($72.68). For its part, the euro It appreciates 0.10% ($1,112), and the ounce of gold earns 0.17% ($2,547). In addition, the 10-year US bond yield relaxes to 3.702% and the bitcoin loses 0.68% ($55,710).