Latest Financial Economic News For Investors
Published Friday, September 3, 2021 at: 9:04 PM EDT
Savings, spending and employee compensation - key fundamentals driving U.S. economic growth - were all very strong in July, according to the latest government reports. However, today's announcement showing the economy created 235,000 new jobs last month was a disappointment.
Here are the highlights of the latest financial economic news.
Disposable personal income remained strong in July, as DPI surge from the third round of Covid relief checks to consumers is spent down and the extra unemployment benefits are no longer available.
Personal spending, however, has recovered to its pre-Covid trend pace. The savings rate, at 9.6%, is still elevated compared to before the pandemic.
Employee compensation, another key fundamental driver of U.S. economic growth, amounted to 61% of total personal income of Americans in July, despite the elevated post-Covid unemployment rate of 5.2%. With wages, salaries, and employee benefits growing by 9.4% in the 12 months ended July 31, 2021, employee compensation is back up to where it would have been if the pandemic never happened.
The unemployment rate ticked lower from 5.4% in July to 5.2% in August is good news, but unemployment is not a forward-looking indicator. The more revealing snapshot of the employment situation is net job growth, and that was a disappointment.
Today’s report that 235,000 new jobs were created in August was much lower than the estimate for 720,000 and far lower than the 1.05 million new jobs created in July. Jobs numbers are volatile, however, so it’s unwise to read too much into the disappointing report.
The Standard & Poor's 500 stock index closed this Friday at 4,535.43. The index lost -0.03% from Thursday, when it set a new all-time closing high. The stock index was up +0.57% from last week, and it has gained +67.86% since the March 23, 2020, bear market low.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market-value weighted index with each stock's weight proportionate to its market value. Index returns do not include fees or expenses. Investing involves risk, including the loss of principal, and past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. .
- Latest On Inflation, Consumer & Business-Owner Optimism
- Slower Growth But Economic Outlook Remains Bright
- Labor Market And Inflation Drove Stocks Higher
- Costlier Homes Expected To Appreciate 4% Annually For The Next Five Years
- Leading Economic Index Falls For 16th Straight Month
- Tax-Sensitive Investment Planning In 2023
- A Healthy Recipe For Growth Is Simmering
- Good News About The U.S. Economy
- The New Bull Market Has Broadened
- An Economy Goldilocks Would Definitely Live With
- Monthly Pace Of New-Job Creation Slowed In June, Which Is Good News
- Standard & Poor's 500 Gained 9.9% In Q2 2023
- This Week’s News For Investors
- This Week’s News For Investors Is Very Good
- Why The New Bull Market Theory Was In The News This Past Week
- Strong Jobs Report Caps A Week For The Record Books
- Why Stocks Rose Friday Despite A Rise In Inflation In April
- Weekly Investor Update
- The Confluence Of Bad News For Recent Retirees And Those About To Retire
- Good And Bad News This Week For Investors
- Getting There: The Economic Balancing Act Progressed In March
- Stocks Gained Friday But Closed Fractionally Lower For The Week
- Good News On Inflation But A Recession May Be Hard To Avoid
- Analysis: The First Data Since The Banking Crisis Erupted In March