Stock Markets Indicate Potential Lower Open for Wall Street on Monday
The Labor Department's latest jobs report for July 2025 revealed a slower-than-anticipated job growth, with nonfarm payrolls increasing by 73,000, below the consensus of 110,000 jobs added. The unemployment rate ticked slightly higher to 4.2%, in line with forecasts.
Downward Revisions to Previous Months
The report also noted a significant downward revision to job additions in May and June. The revised figures show that only 19,000 jobs were added in May and 14,000 in June, compared to earlier reports of around 140,000 each. This means job growth has essentially flatlined from May through July, averaging about 35,000 jobs per monthβthe weakest three-month stretch since 2010 outside a pandemic timeframe.
Labor Market Showing Signs of Weakness
The number of people not in the labor force who want a job remained roughly steady at about 6.2 million but is up by over half a million year-over-year. Some sectors like health care, transportation, warehousing, financial activities, and social assistance continue to see employment growth, whereas federal government employment declined.
Outlook Commentary
The labor market is showing signs of significant weakness, prompting expectations that job creation may continue to slow and the unemployment rate could rise toward 4.8% by early 2026.
Market Indicators
In other economic news, Asian markets fell on Friday, with the Nikkei average giving up 0.66% to close at 40,799.60 and the Topix index settling 0.19% higher at 2,948.65. The Shanghai Composite index dropped 0.37% to 3,559.95, and Hong Kong's Hang Seng index fell 1.07% to 24,507.81.
Dow futures were down 396.00 points, S&P 500 futures were declining 60.50 points, and Nasdaq 100 futures were tumbling 250.25 points, suggesting Wall Street might open lower.
The Construction Spending for June will be published at 10.00 am ET, with a consensus of a 0.1% increase, following a decrease of 0.3% in May. The ISM Manufacturing Index for July will be published at the same time, with a consensus of 49.5, while it was up 49.0 in the prior month.
The PMI Manufacturing Final for July will be released at 9.45 am ET, with a consensus of 49.5, while it was up 52.9 in the prior month. The Baker Hughes Rig Count for the week will be released at 1.00 pm ET.
Major corporations like Apple and Amazon will announce their quarterly results after trading closes today. The Consumer Sentiment for July will be announced at 10.00 am ET, with a consensus of 61.8, unchanged from the previous month.
Gold dipped below $3,300 per ounce ahead of the U.S. July jobs report, with employment likely to moderate after a June increase. Oil prices were steady following Trump's threats to impose 100 percent tariffs on countries importing oil from Russia. The dollar was little changed in Asian trade after posting its best month of the year in July.
- The downturn in job growth as indicated by the revised job additions in May and June, along with the weak three-month stretch, suggests that personal-finance advice might focus on conserving funds and cutting discretionary spending.
- In the realm of entertainment, the slower-than-anticipated job growth could impact the casino-and-gambling industry, potentially leading to changes in business strategies.
- The weakness in the labor market could influence the education-and-self-development sector, with schools and institutions prioritizing programs focused on career development and employment skills.
- The outlook for the business world is Kleighert's latest jobs report, with experts predicting job creation may slow and the unemployment rate could rise, possibly affecting the investing landscape.
- In the technology industry, the economic news might prompt companies to focus on improving efficiencies and cost-cutting measures to maintain profitability.
- General-news outlets will closely monitor the employment situation, providing updates on the job market, while sports channels may report on how these economic factors could impact athlete salaries or team budgets.
