The U.S. unemployment rate increased 5.7%, from 5.5% in June, according to the Labor Department. Unemployment is now at its highest level in four years as employers cut non-farm jobs for a seventh straight month.
The July job loss was not as bad as Wall Street feared and the rise in the unemployment rate can be attributed to some of the younger generation looking for summer jobs. There were 51,000 jobs eliminated in July, bringing losses for the year to 463,000. The last time the jobless rate was higher was in March 2004 when it hit 5.8%.
We were already looking at a higher opening this morning and we may still open on the plus side as the futures market has held up well. The S&P 500 futures rose 3.6 points to 1,270.30, Nasdaq 100 futures rose 2.5 points to 1,856.50 and the Dow futures rose 46 points after the report.
We may get a higher open but the news might wear on the market after we open.