Markets React Favorably Following Surprisingly Positive Jobs Data

Stock futures reacted favorably after a surprising positive employment data. The SPDR S&P ETF Trust SPY rose $0.71, or 0.33 percent, to $217.11 in the pre-market trading.

The official data indicated that total nonfarm payroll employment increased by 255,000 in July. Economists were expecting 185,000.

According to the Bureau of Labor Statistics, job gains were seen in professional, business services, healthcare and financial activities. However, jobs in mining continued its downtick in July.

Related Link: This Economist Is Expecting July's 'Relatively Normal' Jobs Report To Mark A New Trend

While profession and business services could add 70,000 jobs, healthcare added 43,000 jobs in July. Similarly, financial activities employment increased by 18,000.

There was no change in the job situation in other big industries like construction, manufacturing, wholesale trade, retail trade and information.

Average hourly earnings on private nonfarm payrolls rose by $0.08 to $25.69 in July. Similarly, average hourly earnings of private-sector production and nonsupervisory employees rose by $0.07 to $21.59 in the same period.

Significantly, average hourly earnings witnessed 0.3 percent growth in July, which was 0.10 percent above the Street estimate of 0.20 percent surprising the market.

The official data pointed out that the jobless claim remained at the same level of 4.9 percent while market was expecting 4.8 percent. The data also indicated that Government employment edged up by 38,000 in July.