2024-05-03 22:12:56
Today, on May 3rd, 2024, we received a series of economic reports from the United States that provide insights into the current state of its labor market and some key corporate developments. Let's break down these numbers and explain each one using familiar Pakistani examples:
1.
Non-Farm Payrolls (175K vs. expectations of 238K; last month was 315K):
- *Technical:* This measures the number of jobs added in the U.S. excluding farm-related industries.
- *Simple Example:* Imagine a big bazaar where new shops open every month. Expectations were for 238 new shops, but only 175 opened, fewer than last month's impressive 315.
2.
Unemployment Report (3.9% vs. expectations of 3.8%; last month was 3.8%):
- *Technical:* This percentage represents the portion of the workforce that is jobless and actively seeking employment.
- *Simple Example:* In a village of 100 people, 4 are looking for work but can't find any, slightly more than last month.
3.
U-6 Unemployment Rate (7.4%; last month was 7.3%):
- *Technical:* This includes the total unemployed, plus all persons marginally attached to the labor force and part-time workers who want full-time work.
- *Simple Example:* In a bigger town, about 7 out of 100 people either don’t have enough work or are searching for jobs but are not counted as unemployed because they did some work.
4.
Participation Rate (62.70%; last month was 62.70%):
- *Technical:* This measures the percentage of the working-age population that is either employed or actively looking for work.
- *Simple Example:* Out of every 100 adults capable of working, about 63 are either working or trying to find work, unchanged from last month.
5.
Private Non-Farm Payrolls (167K vs. expectations of 181K; last month was 243K):
- *Technical:* This number represents the job growth in the private sector, excluding agricultural sectors.
- *Simple Example:* Consider private companies in a city opening new jobs. Fewer jobs were created this month compared to expectations and the previous month.
6.
Average Hourly Earnings (0.20% vs. expectations of 0.30%; last month was 0.30%):
- *Technical:* This reflects the month-over-month change in earnings for the average U.S. worker.
- *Simple Example:* Imagine that every worker in a factory usually sees their earnings grow a little each month. This month, the growth was less than what people hoped for and less than last month.
7.
Apple’s announcement of a $110B buyback and dividend hike:
- *Technical:* Apple is using its profits to repurchase shares and increase the dividend paid to shareholders.
- *Simple Example:* A very popular restaurant in Lahore decides to buy back its own shares from investors and announces it will give more profits as a bonus to shareholders, boosting its popularity and investor interest.
8.
Amgen (AMGN) soars on weight loss drug news and earnings:
- *Technical:* Amgen's stock price increased significantly due to promising news about a new weight loss drug and strong earnings reports.
- *Simple Example:* A pharmaceutical company in Karachi releases a new, highly effective medicine for weight loss, leading to increased sales and a surge in its stock price.
These indicators and events provide a snapshot of the economic and corporate environment, giving investors and policymakers valuable information to make decisions.
17.4K views19:12
W
