U.S. AVERAGES

In the opening hours market trade lowers even though the employment numbers for the months of July and June are stronger than anticipated. The week end, higher oil prices and markets nearness to the four year-high levels have put several investors in profit taking mood.

The July employment grew and June employment was revised upwards however the hourly payroll cost rose by 0.4%.

ECONOMIC NEWS

Nonfarm employment grew by 207,000 in July, and the unemployment rate was unchanged at 5.0 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Over the month, payroll employment rose in many service-providing industries.

Both the number of unemployed persons, 7.5 million, and the unemployment

rate, 5.0 percent, were unchanged in July. A year earlier, the number of unemployed was 8.2 million and the jobless rate was 5.5 percent.

Over the month, the unemployment rates for most major worker groups—adult men (4.3 percent), adult women (4.7 percent), teenagers (16.1 percent), whites (4.3 percent), and Hispanics or Latinos (5.5 percent)--showed little or no change. The jobless rate for blacks declined from 10.3 to 9.5 percent over the month. The unemployment rate for Asians was 5.2 percent, not seasonally adjusted.

Average hourly earnings of production or non-supervisory workers on private non-farm payrolls rose by 6 cents in July to $16.13, seasonally adjusted. Average weekly earnings increased by 0.4 percent over the month to $543.58. Over the year, both average hourly and weekly earnings grew by 2.7 percent.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed lower, pressured by climbing crude-oil prices, weakness in U.S. markets and political uncertainty in Japan, referring to postal privatization. The Japanese Nikkei tumbled 1%, Hong Kong’s Hang Seng declined 0.4%, and South Korea’s Kospi slid 1.98%. Crude-oil ended up 52 cents at $61.38 a barrel on the NYME. The dollar was trading at 111.23 in Tokyo foreign exchange.

European markets were mixed in mid-day dealings on rising crude-oil prices, corporate earnings with Barclays and Michelin among the gainers, and on U.S. non-farm payroll data due later in the day. The German DAX 30 lost 0.3%, the French CAC 40 was flat, and the U.K.’s FTSE 100 rose 0.3% mainly on airline gains

ENERGY, METALS AND CURRENCIES MARKETS


Crude-oil prices advanced for a sixth consecutive session on accelerating pace of the economy and expectations of increased fuel needs as a consequence. Light sweet crude for September delivery rose 52 cents to $61.90 a barrel on the NYME. London Brent traded up 62 cents at $60.74.

Gold futures traded slightly up, while mining stocks declined after better-than-expected U.S. employment data were released and gave the U.S. dollar a boost, but lowered interest in metals markets. Gold for December delivery rose 40 cents to $444.10 per troy ounce on the NYME. Silver for September delivery fell 3.2 cents to 47.22 per ounce. September copper contract declined 0.35 cents to $1.651 a pound.

The U.S. dollar advanced against the euro and the yen on positive jobs report. Against the euro the dollar stood at $1.2341, up from $1.2384. The greenback bought 112.05 yen, up from 111.23.

EARNINGS NEWS

Sequa, aerospace and auto parts industry supplier, posted 2Q net income of $1.14 a share, up from 48 cents a share in the year-earlier period on strong sales.

National Oilwell Varco, oil and gas drilling manufacturer, announced 2Q profit of 35 cents a share, up from 25 cents a share last year on more–than-doubled revenue. Apart from charges, earnings would have been 49 cents, topping analysts’ forecasts by 5 cents.

The Washington Post, newspapers publisher, posted 2Q net income of $8.16 a share, down from $8.82 a share in the year-ago period on strong revenue, missing analysts’ forecasts of $9.65 cents a share.

British Airways, U.K. carrier, reported 1Q doubled profit of 90 million pounds compared with 43 million pounds a year ago on increased passenger traffic, fuel surcharges and 8.3% higher revenue. The company posted pretax profit jump of 65%, beating estimates of 35%.