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Wednesday, September 01, 2021 12:54 PM

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NEW YORK, Sept. 1 (UPI) -- U.S. markets jumped higher Wednesday despite an Automatic Data Processing Inc. report saying the labor market lost 10,000 private sector jobs in July to August.

The report indicates the employment picture is "essentially flat," said Gary Butler, ADP president and chief executive officer.

The private sector market has added an average 37,000 jobs since February, but the downturn, the first in seven months, is another indication the economic recovery has stalled.

On Wall Street, markets found support from foreign equities. Markets in both Asia and Europe made gains Wednesday.

In late morning trading, the Dow Jones industrial average added 201.85 points, 2.02 percent, to 10,216.57. The Standard & Poor's 500 index added 2.05 percent, 21.54, to 1,070.87. The Nasdaq composite index added 2.12 percent, 44.87, to 2,158.90.

The benchmark 10-year Treasury note fell 34/32 to yield 2.584 percent.

The euro rose to $1.2837 from Tuesday's $1.2673. Against the yen, the dollar rose to 84.55 yen from Tuesday's 84.01 yen.

In Tokyo, the Nikkei 225 index added 1.17 percent, 102.96, to 8,927.02.

ADP says private sector jobs declined

ROSELAND, N.J., Sept. 1 (UPI) -- Payroll firm Automatic Data Processing said Wednesday the U.S. private sector lost 10,000 jobs from July to August after six monthly increases.

The report comes in advance of Friday's government employment report. Analysts predict that report will show the unemployment rate has risen from 9.5 percent to 9.6 percent.

The ADP report, which does not include government jobs, shows the job market "essentially flat" for the year, said Gary Butler, president and chief executive officer of ADP.

For 2010, the economy has added an average of 37,000 private sector jobs per month, the report said.

Butler said, "Employers require economic certainty and a favorable environment in order to expand their businesses and create jobs. To achieve job growth, our nation's policymakers should take stronger actions to incentivize business to innovate, invest and expand."

Chairman of Macroeconomic Advisers LLC Joel Prakken said the decline "confirms a pause in the recovery already evident in other economic data."

On the month, goods-producing businesses lost 40,000 jobs, while service-oriented businesses added 30,000, ADP said.

Mortgage activity rises slightly in week

WASHINGTON, Sept. 1 (UPI) -- The Mortgage Bankers Association said Wednesday U.S. mortgage activity increased in the week ending Aug. 27, with refinancing activity at a 15-month high.

The MBA's Market Composite Index rose 2.7 percent in the week while the Refinancing Index rose 2.8 percent, the trade group said.

During the week, the average interest rate for 30-year, fixed-rate mortgages declined from 4.55 percent to 4.43 percent with points rising from 0.89 to 1.34.

Rates for the average 15-year, fixed-rate mortgage fell from 3.91 percent to 3.88 percent, with points for 15-year contracts falling from 1.64 to 1.45.

"Refinancing activity picked up … as borrowers took advantage of even lower mortgage rates," said Michael Fratantoni, MBA's vice president of research and economics.

However, "Despite the slight increase in purchase activity in the past week, the continued low level of purchase applications indicates we are unlikely to see an increase in new home sales reported for August or existing home sales reported for September," he said in a statement.

Retail shows slight gain in week

WASHINGTON, Sept. 1 (UPI) -- U.S. retail sales rose slightly in the week ending Aug. 28, as unseasonably hot weather continued to influence consumer choices, a trade group said.

The International Council of Shopping Centers said chain store sales rose 0.1 percent compared to the previous week and 2.8 percent compared to the same week of 2009.

The report, released Tuesday, said, "The fiscal month ended mixed, but slightly better than the majority of the month," which saw week-to-week comparisons fall, while year-to-year sales showed steady improvement.

In the most recent week, warm weather "continued to curb back-to-school apparel merchandise demand," the report said.

Customer traffic fell overall, but improved "modestly" at discount chains.

Consumers had a bit more change in their pockets to spend with the average price of gasoline dropping about 2 cents from the previous week to an average price of $2.682 per gallon, the lowest average price since February.

(Source: UPI )


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