Page 25 - aruba-today-20190706

BUSINESS Saturday 6 July 2019
A25

US adds solid 224,000 jobs; Fed rate cut may be less certain

By JOSH BOAK 23,900.
Associated Press The government sector was
WASHINGTON (AP) — U.S. a major source of hiring,
employers sharply stepped adding 33,000 jobs in June.
up their hiring in June, add- Nearly all those gains were
ing a robust 224,000 jobs, at the local level.
an indication of the econ- For Todd Leff, CEO of Hand
omy's durability after more & Stone Massage and Fa-
than a decade of expan- cial Spa, the resilience of
sion. the U.S. job market has
The strength of the jobs re- provided both an opportu-
port the government issued nity and a challenge. With
Friday could complicate more Americans earning
a decision for the Federal steady paychecks, de-
Reserve late this month mand for massages and
on whether to cut interest facials has increased, and
rates to help support the the company plans to add
economy. Most investors 60 locations this year and
have anticipated a rate roughly 1,800 jobs. But the
cut in July and perhaps low unemployment rate
one or two additional Fed has also made it hard to
cuts later in the year. That find and retain workers.
scenario may be less likely "We could hire 1,000 more
now. employees today — if they
Stocks sold off Friday, with In this Tuesday, June 4, 2019 photo, job applicants line up at the Seminole Hard Rock Hotel & Ca- were available," said Leff,
sino Hollywood during a job fair in Hollywood, Fla. On Friday, July 5, the U.S. government issues
the Dow Jones Industrial the June jobs report. whose company has about
Average down roughly 150 Associated Press 430 locations and is based
points in late-morning trad- in Trevose, Pennsylvania.
ing, reflecting a view that tax cuts. least for now, for the Fed to On Friday, the Fed reiterat- Investors have been turning
the Fed might engage in "Although there are drags slash rates as Trump has re- ed that it would act as nec- their attention to the Fed,
fewer rate hikes. The yield on the economy in 2019, peatedly and aggressively essary sustain the econom- which has expressed con-
on the 10-year U.S. Treasury the expansion should con- pressed the central bank to ic expansion, while noting cern about threats to the
note climbed to 2.06% from tinue through this year," do. that most Fed officials have economy, especially the
just under 2%. said Gus Faucher, chief "If we had a Fed that would lowered their expectations uncertainties from Trump's
June's solid job growth economist at PNC Financial lower interest rates, we'd for the course of rates. The trade wars, and about in-
followed a tepid gain of Services. "The doom and be like a rocket ship," the Fed's statement came in its flation remaining persistent-
72,000 jobs in May, a re- gloom was overblown." president asserted to re- semiannual report on mon- ly below its 2% target level.
sult that had fueled con- The unemployment rate porters in an appearance etary policy. A Fed rate cut, whenever it
cerns about the econo- ticked up to 3.7% in June Friday. "But we're paying a In Friday's jobs report for happens, would be its first
my's health. But with June's from 3.6% for the previ- lot of interest, and it's un- June, the hiring gains were in more than a decade.
pace of hiring, employers ous two months, reflecting necessary. But we don't broad. Construction com- Joshua Shapiro, chief U.S.
have now added, on av- an influx of people seek- have a Fed that knows panies added 21,000 work- economist for the consul-
erage, a solid 171,000 jobs ing jobs who were initially what they're doing." ers after having increased tancy MFR, said the likeli-
for the past three months. counted as unemployed. Last year, Fed officials their payrolls by only 5,000 in hood of a Fed rate cut late
Last month's burst of hiring Average hourly wages rose raised rates four times, in May. Manufacturers hired this month is now slightly
suggests that many em- 3.1% from a year ago. part to stave off the risk of 17,000, up from just 3,000 lower, though he still es-
ployers have shrugged off Trump responded to Fri- high inflation and in part in May. Health care and timates that the federal
concerns about weaker day's jobs report by tweet- to try to ensure that they social assistance added funds rate — what banks
growth, President Donald ing, "JOBS, JOBS, JOBS!" would have room to cut 50,500 jobs. Hiring by trans- charge each other — will
Trump's trade wars and the But the strong hiring gains rates if the economy stum- portation and warehous- be sharply lower by the
waning benefits from U.S. have lessened the case, at bled. ing companies increased end of next year.q

Samsung predicts 56% drop in 2Q profit on weak chip market

Associated Press The company said its rev- ant Huawei may have also
SEOUL, South Korea (AP) enue likely fell 4% to 56 tril- contributed to Samsung's
— Samsung Electronics lion won ($48 billion), but profit woes by reducing its
Co. said Friday its operat- did not provide a detailed chip shipments and push-
ing profit for the last quar- account of its performance ing down chip prices far-
ter likely fell more than 56% by business division. It will ther.
from a year earlier amid a release a finalized earnings Samsung, which is the
weak market for memory report later this month. world's biggest maker of
chips. Analysts say falling prices of semiconductors and smart-
The South Korean tech gi- DRAM and NAND memory phones and a major pro-
ant estimated an operat- chips are eating into the ducer of display screens, is
ing profit of 6.5 trillion won earnings of the company, also bracing for the impact
($5.5 billion) for the April- which saw its operating of tightened Japanese
June quarter, which would profit during the first quarter controls on exports of high-
represent a 56.3% drop drop more than 60% from tech materials used in semi- Visitors are silhouetted at Samsung Electronics shop in Seoul,
South Korea, Friday, July 5, 2019.
from the same period last last year. U.S. sanctions on conductors and displays. q Associated Press
year. Chinese technology gi-