The labor market overshadowed Greece – Republic

The last session this week in New York ended with mixed results. The center of attention was the publication of data from the labor market.

The last session has not brought us mixed results. While ending the trading bell the Dow Jones Industrial lost 0.31 percent. after falling to a level of 17,849.46 points. S & amp; P lost weight by 0.14 percent. to 2092.83 points. In the opposite direction went Nasdaq, whose valuations increased by 0.18 per cent. to 5068.46 points.

The end of the week on Wall Street proceeded to the rhythm of the two main themes. The first one is a never ending story under the title “Greek crisis”. Even at the beginning of the week it seemed that an agreement was near after the euro zone leaders met in Berlin. It soon turned out that none of these things. Athens rejected the conditions set in response presented his own reform plan. This, which surprised no one, but has not gained the approval of creditors. It created another project, this time created by the lenders, who eventually – on Friday – was named by the Prime Minister of Greece Alexis Cipras “irrational” and landed in the basket. Cipras emphasized here that it is necessary to alleviate “some form” of Greek debt.

Greece warmed investors throughout the week, but on Friday was not the only important issue on which watched by investors. On the last day of this week we learned report on the situation on the labor market in the US. The result is very good.

As reported the US Department of Labor, the number of jobs in non-agricultural sectors increased in May by 280 thous., While in April increased by 221 thous., After the correction. The revision of the number of new jobs outside agriculture in the last two months amounted to a net plus 32 thousand. The number of jobs in the US private sector rose by 262 thous., While a month earlier increased by 206 thous., After the correction. The US unemployment rate in May was 5.5 per cent., Against 5.4 per cent. in April.

The results are better than expected. Analysts estimated that in the period we notice an unemployment rate of 5.4 percent. and that the number of jobs in non-agricultural sectors will increase by 226 thousand. to 223 thousand. in April before correction in the private sector will increase by 220 thousand. to 213 thousand. a month earlier before correction.

– The report from the labor market favors the view that the economy is in much better condition than suggested by GDP figures – said Joe LaVorgna of Deutsche Bank Securities Inc. in New York. – I am sure that soon, the unemployment rate will fall again – he said.

After the publication of the report indexes fell in New York Stock Exchange. Economists estimate that it may be due to the fact that Friday’s labor market data indicate the possibility of a faster increase in US interest rates by the Fed.

– If Janet Yellen (Fed chief) establish criteria to be met by economy that the rate hike was possible that Friday’s report certainly meets these criteria – rated turn Guy Lebas of Janney Montgomery Scott LLC in Philadelphia.