U.S. weekly jobless claims fall; labor market strong

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The number of Americans filing applications for unemployment benefits unexpected...

WASHINGTON - The number of Americans filing applications for unemployment benefits unexpectedly fell last week, suggesting the labor market remains strong even as the economy is slowing.

Worries about the trade war’s impact on the U.S. economic expansion, the longest on record, prompted the Federal Reserve to cut interest rates last week for the first time since 2008. Financial markets have fully priced in another rate cut next month.“Initial claims have been sending a reasonably upbeat message about conditions in the labor market,” said Daniel Silver, an economist at JPMorgan in New York.

U.S. stocks were trading higher as unexpectedly better Chinese data and a steadying of the yuan provided some comfort to investors rattled by the rise in U.S.-China trade tensions. Prices of U.S. Treasuries fell while the dollar .DXY was slightly stronger against a basket of currencies. Nonfarm payrolls increased by 164,000 jobs in July, down from 193,000 in June. Job growth over the last three months averaged 140,000 per month, the lowest in nearly two years, compared to 223,000 in 2018. The moderation in employment growth partly reflects a shortage of workers.

Slower economic growth was also underscored by a separate report from the Commerce Department on Thursday showing wholesale inventories unchanged in June instead of rising 0.2% as estimated last month.

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Keeping the profits high for the wealthy while the labor is kept cheap for the workers just how America likes it

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