![\"Wage](\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/08\/111-1100x800.png\")
<\/figure>\n\n\n\nEducation and Health Services Snatch Workers<\/strong><\/h2>\n\n\n\nJob gains were not broad based and mostly concentrated in education and health services, with a gain of 100,000. The other services, construction, financial activities, wholesale trade, leisure and hospitality, government, retail trade and mining helped at more tempered levels, however, with additions of 20,000, 19,000, 19,000, 17,900, 17,000, 15,000, 8,500 and 1,000 respectively. The information, transportation and warehousing, professional and business services, manufacturing and utilities sectors lost 12,000, 8,400, 8,000, 2,000 and 200 jobs.<\/p>\n\n\n\n
Positive Investor Sentiment Extends Across Markets<\/strong><\/h2>\n\n\n\nMarkets are reacting positively to job growth slightly missing expectations, while choosing not to worry about the lower unemployment rate and wage pressures. Among equities, every sector is higher except for technology, which is being weighed down by disappointing Apple earnings with the company\u2019s shares down 3% intraday. All major U.S. equity indices are up, with the Dow Jones Industrial Average leading by climbing 0.6%. Treasuries and the dollar are marching to the beat of the risk-on tune, with the 2- and 10-year maturities down 8 and 9 basis points (bps) to 4.82% and 4.10% while the Dollar Index is down 55 bps to 101.92. Crude oil prices are climbing from an extension of Saudi Arabia\u2019s voluntary 1 million barrel per day production cut through September and significant declines in U.S. inventories with WTI crude oil up 0.9% to $82.27 per barrel, its highest level since April.<\/p>\n\n\n\n
Consumers Venture Abroad<\/strong><\/h2>\n\n\n\nWeak job creation in leisure and hospitality resulted, at least in part, from consumers flocking to non-U.S. destinations rather than a broad decline in spending. For Airbnb\u2019s second quarter, the average daily rate for short-term rentals done through the company\u2019s booking platform increased 1% globally, but in North America, the rate declined 1% as consumers jumped on the ability to travel internationally following the lifting of stay-at-home orders or other policies to slow the spread of Covid-19. A strong dollar is also enticing consumers to travel abroad. The number of cross-border nights booked increased 16% while bookings in the U.S. were virtually flat. The company\u2019s second-quarter adjusted earnings per share (EPS) of $0.98 substantially beat the $0.77 EPS expected by a consensus of analysts. <\/p>\n\n\n\n
Computer Sales Languish, but Shoppers Splurge Elsewhere<\/strong><\/h2>\n\n\n\nApple\u2019s second quarter device sales declined as consumers rein in goods purchases, while Amazon.com said its e-commerce sales and digital advertising revenues improved. Apple\u2019s quarterly revenue declined approximately 1% year-over-year (y\/y) to $81.8 billion, but still beat the consensus expectation of $81.69 billion. After cutting costs, including laying off employees, Apple\u2019s EPS of $1.26 increased 5% from the year-ago quarter and exceeded the $1.19 consensus expectation. iPhone and Mac computer sales declined 2% and 7% y\/y, respectively, while iPad sales, which faced tough comparisons due to product launches last year, dropped 20%. Apple\u2019s services such as streaming TV, advertising, warranties and payments grew 8%, in large part due to the company monetizing users of digital devices. Amazon.com generated an EPS of $0.65, exceeding the consensus expectation of $0.35 and the company\u2019s overall revenue of $134.4 billion grew 11% from the year-ago quarter. Advertising revenues totaled $10.8 billion and grew 22% y\/y while sales from the company\u2019s online sales increased only 4% to $53 billion. The company\u2019s AWS cloud computing revenues grew 12% y\/y after growing 16% in the first quarter.<\/p>\n\n\n\n
A Thorny Challenge for the Fed<\/strong><\/h2>\n\n\n\n\nInvestors are viewing today\u2019s data with a glass-half full perspective, even as these wage pressures combined with a potentially hot CPI next week could lead to a close call regarding increasing the fed funds rate at the September Fed meeting.<\/strong><\/p>\n<\/blockquote>\n\n\n\nWhile workers are benefiting from wage increases as a strong labor market illustrates that the consumer can still thrive, this morning\u2019s jobs report underscores the challenges that Federal Reserve Chairman Jerome Powell and policymakers face with slowing inflation to the central bank\u2019s 2% target. After bumping the fed funds rate 25 bps to a 22-year high range of 5.25% to 5.50% in July, Powell said reaching the 2% goal will require the labor market to soften and he emphasized that the Fed has a long way to go to hit the target. Just one day after Powell\u2019s comments, the Bureau of Economic Analysis reported that second-quarter GDP grew at an annualized seasonally-adjusted rate of 2.4% in excess of inflation, exceeding the 2% analyst consensus expectation and pointing to continued strength of consumer spending and business investment. While the July Institute for Supply Management\u2019s PMI Index for Manufacturing<\/a> and real-time retail sales point to an economy that is slowing, today\u2019s labor report and the surprisingly strong GDP growth underscore that Powell and his fellow policymakers have a challenging road ahead in fighting inflation. In the meantime, investors are viewing today\u2019s data with a glass-half full perspective, even as these wage pressures combined with a potentially hot CPI next week could lead to a close call regarding increasing the fed funds rate at the September Fed meeting. <\/p>\n\n\n\n
Markets are reacting positively to job growth slightly missing expectations, while choosing not to worry about the lower unemployment rate and wage pressures. Among equities, every sector is higher except for technology, which is being weighed down by disappointing Apple earnings with the company\u2019s shares down 3% intraday. All major U.S. equity indices are up, with the Dow Jones Industrial Average leading by climbing 0.6%. Treasuries and the dollar are marching to the beat of the risk-on tune, with the 2- and 10-year maturities down 8 and 9 basis points (bps) to 4.82% and 4.10% while the Dollar Index is down 55 bps to 101.92. Crude oil prices are climbing from an extension of Saudi Arabia\u2019s voluntary 1 million barrel per day production cut through September and significant declines in U.S. inventories with WTI crude oil up 0.9% to $82.27 per barrel, its highest level since April.<\/p>\n\n\n\n
Consumers Venture Abroad<\/strong><\/h2>\n\n\n\nWeak job creation in leisure and hospitality resulted, at least in part, from consumers flocking to non-U.S. destinations rather than a broad decline in spending. For Airbnb\u2019s second quarter, the average daily rate for short-term rentals done through the company\u2019s booking platform increased 1% globally, but in North America, the rate declined 1% as consumers jumped on the ability to travel internationally following the lifting of stay-at-home orders or other policies to slow the spread of Covid-19. A strong dollar is also enticing consumers to travel abroad. The number of cross-border nights booked increased 16% while bookings in the U.S. were virtually flat. The company\u2019s second-quarter adjusted earnings per share (EPS) of $0.98 substantially beat the $0.77 EPS expected by a consensus of analysts. <\/p>\n\n\n\n
Computer Sales Languish, but Shoppers Splurge Elsewhere<\/strong><\/h2>\n\n\n\nApple\u2019s second quarter device sales declined as consumers rein in goods purchases, while Amazon.com said its e-commerce sales and digital advertising revenues improved. Apple\u2019s quarterly revenue declined approximately 1% year-over-year (y\/y) to $81.8 billion, but still beat the consensus expectation of $81.69 billion. After cutting costs, including laying off employees, Apple\u2019s EPS of $1.26 increased 5% from the year-ago quarter and exceeded the $1.19 consensus expectation. iPhone and Mac computer sales declined 2% and 7% y\/y, respectively, while iPad sales, which faced tough comparisons due to product launches last year, dropped 20%. Apple\u2019s services such as streaming TV, advertising, warranties and payments grew 8%, in large part due to the company monetizing users of digital devices. Amazon.com generated an EPS of $0.65, exceeding the consensus expectation of $0.35 and the company\u2019s overall revenue of $134.4 billion grew 11% from the year-ago quarter. Advertising revenues totaled $10.8 billion and grew 22% y\/y while sales from the company\u2019s online sales increased only 4% to $53 billion. The company\u2019s AWS cloud computing revenues grew 12% y\/y after growing 16% in the first quarter.<\/p>\n\n\n\n
A Thorny Challenge for the Fed<\/strong><\/h2>\n\n\n\n\nInvestors are viewing today\u2019s data with a glass-half full perspective, even as these wage pressures combined with a potentially hot CPI next week could lead to a close call regarding increasing the fed funds rate at the September Fed meeting.<\/strong><\/p>\n<\/blockquote>\n\n\n\nWhile workers are benefiting from wage increases as a strong labor market illustrates that the consumer can still thrive, this morning\u2019s jobs report underscores the challenges that Federal Reserve Chairman Jerome Powell and policymakers face with slowing inflation to the central bank\u2019s 2% target. After bumping the fed funds rate 25 bps to a 22-year high range of 5.25% to 5.50% in July, Powell said reaching the 2% goal will require the labor market to soften and he emphasized that the Fed has a long way to go to hit the target. Just one day after Powell\u2019s comments, the Bureau of Economic Analysis reported that second-quarter GDP grew at an annualized seasonally-adjusted rate of 2.4% in excess of inflation, exceeding the 2% analyst consensus expectation and pointing to continued strength of consumer spending and business investment. While the July Institute for Supply Management\u2019s PMI Index for Manufacturing<\/a> and real-time retail sales point to an economy that is slowing, today\u2019s labor report and the surprisingly strong GDP growth underscore that Powell and his fellow policymakers have a challenging road ahead in fighting inflation. In the meantime, investors are viewing today\u2019s data with a glass-half full perspective, even as these wage pressures combined with a potentially hot CPI next week could lead to a close call regarding increasing the fed funds rate at the September Fed meeting. <\/p>\n\n\n\n
Apple\u2019s second quarter device sales declined as consumers rein in goods purchases, while Amazon.com said its e-commerce sales and digital advertising revenues improved. Apple\u2019s quarterly revenue declined approximately 1% year-over-year (y\/y) to $81.8 billion, but still beat the consensus expectation of $81.69 billion. After cutting costs, including laying off employees, Apple\u2019s EPS of $1.26 increased 5% from the year-ago quarter and exceeded the $1.19 consensus expectation. iPhone and Mac computer sales declined 2% and 7% y\/y, respectively, while iPad sales, which faced tough comparisons due to product launches last year, dropped 20%. Apple\u2019s services such as streaming TV, advertising, warranties and payments grew 8%, in large part due to the company monetizing users of digital devices. Amazon.com generated an EPS of $0.65, exceeding the consensus expectation of $0.35 and the company\u2019s overall revenue of $134.4 billion grew 11% from the year-ago quarter. Advertising revenues totaled $10.8 billion and grew 22% y\/y while sales from the company\u2019s online sales increased only 4% to $53 billion. The company\u2019s AWS cloud computing revenues grew 12% y\/y after growing 16% in the first quarter.<\/p>\n\n\n\n
A Thorny Challenge for the Fed<\/strong><\/h2>\n\n\n\n\nInvestors are viewing today\u2019s data with a glass-half full perspective, even as these wage pressures combined with a potentially hot CPI next week could lead to a close call regarding increasing the fed funds rate at the September Fed meeting.<\/strong><\/p>\n<\/blockquote>\n\n\n\nWhile workers are benefiting from wage increases as a strong labor market illustrates that the consumer can still thrive, this morning\u2019s jobs report underscores the challenges that Federal Reserve Chairman Jerome Powell and policymakers face with slowing inflation to the central bank\u2019s 2% target. After bumping the fed funds rate 25 bps to a 22-year high range of 5.25% to 5.50% in July, Powell said reaching the 2% goal will require the labor market to soften and he emphasized that the Fed has a long way to go to hit the target. Just one day after Powell\u2019s comments, the Bureau of Economic Analysis reported that second-quarter GDP grew at an annualized seasonally-adjusted rate of 2.4% in excess of inflation, exceeding the 2% analyst consensus expectation and pointing to continued strength of consumer spending and business investment. While the July Institute for Supply Management\u2019s PMI Index for Manufacturing<\/a> and real-time retail sales point to an economy that is slowing, today\u2019s labor report and the surprisingly strong GDP growth underscore that Powell and his fellow policymakers have a challenging road ahead in fighting inflation. In the meantime, investors are viewing today\u2019s data with a glass-half full perspective, even as these wage pressures combined with a potentially hot CPI next week could lead to a close call regarding increasing the fed funds rate at the September Fed meeting. <\/p>\n\n\n\n
Investors are viewing today\u2019s data with a glass-half full perspective, even as these wage pressures combined with a potentially hot CPI next week could lead to a close call regarding increasing the fed funds rate at the September Fed meeting.<\/strong><\/p>\n<\/blockquote>\n\n\n\n While workers are benefiting from wage increases as a strong labor market illustrates that the consumer can still thrive, this morning\u2019s jobs report underscores the challenges that Federal Reserve Chairman Jerome Powell and policymakers face with slowing inflation to the central bank\u2019s 2% target. After bumping the fed funds rate 25 bps to a 22-year high range of 5.25% to 5.50% in July, Powell said reaching the 2% goal will require the labor market to soften and he emphasized that the Fed has a long way to go to hit the target. Just one day after Powell\u2019s comments, the Bureau of Economic Analysis reported that second-quarter GDP grew at an annualized seasonally-adjusted rate of 2.4% in excess of inflation, exceeding the 2% analyst consensus expectation and pointing to continued strength of consumer spending and business investment. While the July Institute for Supply Management\u2019s PMI Index for Manufacturing<\/a> and real-time retail sales point to an economy that is slowing, today\u2019s labor report and the surprisingly strong GDP growth underscore that Powell and his fellow policymakers have a challenging road ahead in fighting inflation. In the meantime, investors are viewing today\u2019s data with a glass-half full perspective, even as these wage pressures combined with a potentially hot CPI next week could lead to a close call regarding increasing the fed funds rate at the September Fed meeting. <\/p>\n\n\n\n