Unemployment rate is steady

The unemployment rate remained unchanged at 4.9% in July—the number of people unemployed remained at ~7.8 million. The number of people unemployed in the short term (less than five weeks) fell by ~258,000, while the number of people unemployed in the long term (over 27 weeks) didn’t change much in July. Long-term unemployment accounts for nearly 26.6% of the total unemployment numbers.

Unemployment Rate Remained Unchanged at 4.9% in July

Unemployment rates among various sections

Adult women (aged above 20) and teenagers (age 16–19) saw a fall in unemployment of 0.2% and 0.4%, respectively, while the rates among adult men rose by 0.1%. The unemployment rates for people with educational qualification lower than a high school diploma fell by 1.2%, while the unemployment rates among people with a college degree rose by 0.1%.

The rise in unemployment rates of 0.3% in the Asian population of 16 years old and above was offset by the fall in unemployment rates among the Hispanic and Latino population.

Impact on the market

The unemployment rate staying above market forecasts could see a decrease in the consumer spending pattern over time. The Consumer Discretionary Select Sector SPDR Fund (XLY), the Consumer Staples Select Sector SPDR ETF (XLP), and the Utilities Select Sector SPDR (XLU) are among the ETFs that would be negatively affected by the rise in unemployment rates. Stocks such as Macy’s (M) and Walmart (WMT) rose by 1.3% and 0.63%, respectively, on August 5 after the employment report was published.

Latest articles

German chip maker Infineon Technologies has reportedly raised 1.55 billion euros (~$1.74 billion) in capital by selling its shares to fund its acquisition of Cypress Semiconductor (CY). Infineon has sold ~113 million new shares at 13.70 euros each.

As of June 18, Dunkin’ Brands (DNKN) was trading at $80.07, an 8.9% rise since reporting its first-quarter earnings on May 2. Also, DNKN was trading at a premium of 29.8% from its 52-week low of $61.69 and a discount of 1.6% from its 52-week high of $81.40.

19 Jun

Are Lower Oil Prices Weighing on ExxonMobil Stock?

WRITTEN BY Maitali Ramkumar

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter so far. Let's review ExxonMobil's stock performance in comparison to oil price changes and equity market movements in the quarter.

19 Jun

As Facebook Unveils Libra, MSFT and CRM Join a Blockchain Group

WRITTEN BY Mayur Sontakke, CFA, FRM

On June 18, Facebook (FB) launched Libra, its own cryptocurrency. On the same day, CoinDesk published another piece of blockchain news that didn’t receive as much fanfare as Facebook’s Libra news. Was the timing a coincidence? We think not.

Uber Technologies (UBER) has picked Melbourne as another test site for its flying taxi service known as UberAir. The Australian city is the first international test site Uber has chosen for its flying taxi service. The addition of Melbourne brings the number of test locations Uber has picked for its UberAir service to three.

Lyft (LYFT) and Uber Technologies (UBER) are pushing back against California legislation that would require them to recognize their drivers as employees rather than independent contractors. The legislation would require companies like Lyft to give their drivers the compensation and benefits spelled out under California’s employment regulations.

172.31.16.229