Economy

Disappointing Jobs Data Weighs on Wall Street

Published

5 years ago

02/10/2019

By Investors Hub

The major U.S. index futures are pointing to a lower opening on Wednesday, with stocks likely to see further downside following the sharp pullback seen over the course of the previous session.

Concerns about the economic outlook may continue to weigh on the markets following the release of a report from payroll processor ADP showing a slowdown in the pace of private sector job growth in the month of September.

ADP said private sector employment climbed by 135,000 jobs in September compared to economist estimates for an increase of about 140,000 jobs.

The report also showed a significant downward revision to the increase in private sector jobs in August, which was slashed to 157,000 jobs from the originally reported 195,000 jobs.

?Businesses have turned more cautious in their hiring,? said Mark Zandi, chief economist of Moody?s Analytics. ?If businesses pull back any further, unemployment will begin to rise.?

Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, noted the average monthly job growth for the past three months has fallen to 145,000 from 214,000 in the same time period last year.

On Friday, the Labor Department is scheduled to release its more closely watched monthly jobs report, which includes both public and private sector jobs.

Employment is expected to increase by 140,000 jobs in September after rising by 130,000 jobs in August, while the unemployment rate is expected to hold at 3.7 percent.

After an early move to the upside, stocks showed a significant downturn over the course of the trading session on Tuesday. The major averages pulled back well off their highs of the session and firmly into negative territory.

The major averages moved to the downside going into the close, ending the day near their lows of the session. The Dow plunged 343.79 points or 1.3 percent to 26,573.04, the Nasdaq slumped 90.65 points or 1.1 percent to 7,908.68 and the S&P 500 tumbled 36.49 points or 1.2 percent to 2,940.25.

The sharp pullback on Wall Street came following the release of a report from the Institute for Supply Management showing a continued contraction in U.S. manufacturing activity in the month of September.

The ISM said its purchasing managers index dropped to 47.8 in September from 49.1 in August, with a reading below 50 indicating a contraction in manufacturing activity. Economists had expected the index to inch up to 50.1.

With the unexpected decrease, the index fell to its lowest level since hitting 46.3 in June of 2009, the last month of the Great Recession.

Timothy Fiore, Chair of the ISM Manufacturing Business Survey Committee, noted the contraction continues six straight months of softening in manufacturing.

“Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019,” Fiore said. “Overall, sentiment this month remains cautious regarding near-term growth.”

The new export orders index slid to 41.0 in September from 43.3 in August, falling to its lowest level since hitting 39.4 in March of 2009.

Economists noted the disappointing data may also reflect the ongoing strike at General Motors (GM), which has also begun to affect production at suppliers.

Meanwhile, President Donald Trump blamed the weak manufacturing data on the Federal Reserve, which he blasted as “pathetic” in a post on Twitter.

“As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected. Fed Rate too high. They are their own worst enemies, they don’t have a clue. Pathetic!” Trump tweeted.

Brokerage stocks showed a substantial move to the downside on the day, dragging the NYSE Arca Broker/Dealer Index down by 5.9 percent to its lowest closing level in a month.

Online brokers fell sharply after Charles Schwab (SCHW) announced plans to eliminate online trade commissions for U.S. stocks, exchange traded funds and options as part of an escalating price war.

Considerable weakness also emerged among oil service stocks, as reflected by the 3.4 percent nosedive by the Philadelphia Oil Service Index. The weakness among oil service stocks came amid a decrease by the price of crude oil.

Natural gas, networking, banking and chemical stocks also saw significant weakness on the day, moving lower along with most of the other major sectors.

Economy

Brent Dips Below $70 as Trump Policies Spook Markets

Published

36 minutes ago

11/03/2025

Adedapo Adesanya

By Adedapo Adesanya

Brent crude dropped below $70 on Monday, specifically losing $1.08 or 1.5 per cent to trade at $69.28 per barrel, as fears that the United States’ tariffs on Canada, Mexico and China would slow economies around the world and slash energy demand.

Also, the US West Texas Intermediate (WTI) futures settled at $66.03 a barrel after shedding $1.01 or 1.5 per cent during the session as the wider market saw plunges after the US President, Mr Donald Trump’s protectionist policies sent jitters across major economies and the oil market wasn’t spared.

The American president has imposed and then delayed tariffs on the country’s biggest oil suppliers,Canada and Mexico, while also raising duties on Chinese goods.

China and Canada have responded with tariffs of their own but Mexico has not followed in the path of two countries, waiting to study the direction of the development before making any move.

Over the weekend, US Commerce Secretary Howard Lutnick said President Trump would not let up pressure on tariffs on Mexico, Canada, and China.

Also, President Trump over the weekend declined to predict whether the US could face a recession as investors worried about a possible economic slowdown that could curtail oil demand.

On the supply front, President Trump is seeking to choke off Iranian oil exports as part of efforts to pressure the country to reduce in its nuclear programme.

Meanwhile, Iran’s Supreme Leader Ayatollah Ali Khamenei said on Saturday that his country will not be bullied into negotiations.

President Trump also said the US would intensify sanctions on Russia if it fails to reach a ceasefire deal with Ukraine.

This is as the country is looking ways to ease sanctions on Russia’s energy sector if it agrees to end its war with Ukraine.

Meanwhile, Russia’s Deputy Prime Minister Alexander Novak said the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed to start increasing oil production from April.

He added that the alliance could reverse the decision afterwards if there are market imbalances in the future.

Economy

Ellah Lakes Lists N3.1bn Shares from Debt Conversion on Stock Exchange

Published

13 hours ago

10/03/2025

Aduragbemi Omiyale

By Aduragbemi Omiyale

The N3.1 billion shares of Ellah Lakes Plc converted from debt to equity have been listed on the Nigerian Exchange (NGX) Limited.

The equities from the exercise were taken to the stock exchange for listing last Wednesday to increase the total issued and fully-paid shares of the organisation.

Business Post reports that the company used a total of 1,104,386,890 ordinary shares of 50 Kobo each at N2.8 per unit to pay up about N3.1 billion debt incurred by the firm.

The board of Ellah Lakes was given the authority to convert the company’s outstanding debt into equity at its Annual General Meeting (AGM) on December 5, 2024, in Lagos.

In a notice to investing public last week, the NGX said, “Trading licence holders are hereby notified that additional 1,104,386,890 ordinary shares of 50 Kobo each of Ellah Lakes Plc were on Wednesday, March 5, 2025, listed on the daily official list of Nigerian Exchange (NGX) Limited.

“The additional shares listed on NGX arose from Ellah Lakes Plc’s conversion of N3,092,283,294.81 debt to equity.

“With this listing of the additional 1,104,386,890 ordinary shares, the total issued and fully paid-up shares of Ellah Lakes Plc have now increased from 2,753,786,788 to 3,858,173,678 ordinary shares of 50 Kobo each.”

The conversion of the company’s debt to equity came after one of its largest shareholders, CBO Capital, offloaded about 81 million units of the organisation’s equities at the stock market recently.

Economy

Thailand SEC Adopts Tether’s USDT as Currency

Published

14 hours ago

10/03/2025

Adedapo Adesanya

By Adedapo Adesanya

Thailand’s Securities and Exchange Commission (SEC) has approved the use of Tether’s stablecoin, USDT, as a currency.

According to a statement on Monday, the approval enables USDT to be traded within the country, facilitating its listing on regulated exchanges and paving the way for USDT to be accepted for payments, which advances the region’s leadership in digital asset innovation.

The updated regulations aim to enhance flexibility in digital asset businesses and will take effect on March 16, 2025.

This comes after the Thailand regulator sought public feedback on these changes, which were finalized in February 2025 with widespread industry support.

“The regulator’s recognition of USDT as an approved cryptocurrency marks a pivotal moment in the evolution of digital assets in the region and represents a major step toward clarifying and enhancing Thailand’s regulatory framework.

“This will provide investors with greater flexibility and choice while fostering a more dynamic and resilient industry. By enabling the seamless integration of USDT, the decision supports the diversification and modernization of Thailand’s financial landscape,” the statement added.

Thailand is one of the friendliest jurisdictions for digital assets in recent years and ranks among the top 20 countries globally in terms of adoption.

USDT accounts for around 40 per cent of volumes.

Tether’s USDT with a market cap of $142 billion, is the world’s most widely used stablecoin, providing a trusted, efficient bridge between traditional fiat systems and digital economies.

Speaking on the development, Mr Paolo Ardoino, CEO of Tether, said it will continue to boost its services and offerings in more friendly markets.

“We highly value the Thai market and are continuously exploring ways to enhance our services and offerings. Our priority is to provide users in Thailand with a secure, transparent, and reliable stablecoin experience.

“We are committed to supporting the long-term success and adoption of stablecoins in Thailand and look forward to contributing to the growth of the country’s digital asset ecosystem by fostering a strong and sustainable stablecoin infrastructure.”

Thailand’s forward-thinking approach to digital asset regulation sets a global benchmark, and Tether is proud to see USDT play a pivotal role in driving economic progress and digital transformation in the region.

Tether added that this approval confirms its dedication to building bridges between traditional and decentralized economies while ensuring security, trust, and efficiency for users worldwide.

“Thailand’s forward-looking stance on stablecoins is reflected in its vibrant, Thai baht-backed digital asset market,” it added.