Private employers added 195,000 jobs in August, according to the latest ADP National Employment Report, surging past analyst expectations of 149,000 even as recession fears continue to mount. Most hiring took place in the service-providing sector, with 184,000 new jobs created. Manufacturing hiring remained fairly steady, with 8,000 jobs added.
The share of American workers satisfied with their paychecks rose last year, and “the biggest leap came from millennials and Generation Z, whose enthusiasm for their compensation shot from 36% in 2017 to nearly 46% a year later,” Lauren Weber reports for The Wall Street Journal.
“In all, nearly 54% of U.S. workers said they were satisfied with their jobs in 2018, the highest share reported in more than two decades.”
It’s often said that the stock market is not the real economy, meaning: Wall Street traders make educated guesses about the future, so don’t read too much into this or that moment’s results. Stocks bounce around. GDP numbers, hiring and other data better reflect the nation’s health.
But if the stock market isn’t the real economy, it’s real life for tens of millions of Americans who have 401(k), IRA or other retirement savings. If you’re one of those people, check your mailbox or online account for second-quarter results to get a satisfying jolt: Your balance is rising. Because the economy continues to grow, and add jobs at a fast clip, 10 years into a record expansion. At this juncture, the stock market reflects the real economy.
What to expect this summer and fall.
The first half of 2019 was a wild one for investors, with the S&P 500 gaining an impressive 17%. The ride wasn’t always a smooth one, with concerns over slowing economic growth and an ongoing trade war between the U.S. and China creating volatility in the market. So far, fears over a U.S. recession in 2019 have proven unwarranted, but investors are understandably concerned about what’s coming in the second half of the year. Here are seven predictions about what investors can expect from the LPL Research team.
After stocks’ seemingly strong start to the year and minor correction in May, investors have reason to be satisfied with the market’s 2019 performance. But by some measures, the stock market is lagging after shaking off the Q4 bear market. And trade wars and interest rates remain huge risks that loom large in the stock market forecast for the next six months.
As the second half of 2019 starts, trade troubles still gnaw at investors. President Donald Trump said Tuesday he will have an extended meeting with Chinese President Xi Jinping this month. But the issue is clouded with uncertainty. Barely a month ago, Trump threatened tariffs on Mexican imports, not because of trade issues but rather immigration control.
Investors hope the Federal Reserve will cut interest rates in the second half of the year to offset the effects of a tariff outbreak. Stocks are rising again on favorable chances for at least a couple of interest-rate cuts.
What can we expect in the next six months of 2019?
To enjoy a comfortable future, investing is absolutely essential for most people.
Why invest? Investing can provide you with another source of income, help fund your retirement or even get you out of a financial jam in the future. Above all, investing helps you grow your wealth — allowing your financial goals to be met and increasing your purchasing power over time.
Can America solve its illegal immigration problem both justly and humanely? Yes, but it requires first building a border wall. Washington Post columnist and Pulitzer Prize-winning author Charles Krauthammer explains why.
German Chancellor Angela Merkel said Europeans could no longer completely rely on others, and must take their fate into their own hands. She told an election rally in Munich on May 28 that her experiences “in the last few days,” during which she attended NATO and G7 meetings, had convinced her of this. Her comments have been widely interpreted as meaning that after the U.S. election and Brexit vote, Washington and London were less reliable partners — though she insisted “friendship” would be maintained with both countries.