United States factory activity edges up; private payrolls surge

In the bond market, benchmark 10-year Treasury yields were up 3 basis points at 2.225 percent, while the German counterpart was marginally higher at 0.310 percent. Large businesses added 57,000 jobs.

The U.S. dollar rose against other major currencies on Thursday on upbeat economic data. "Unless we have a real weak employment data tomorrow I think it's a go-ahead for the Fed to raise rates in June", said Peter Cardillo, chief market economist at First Standard Financial in NY. Economists are expecting a non-farm payrolls gain of 185,000 in May alongside a steady unemployment rate of 4.4% and a 0.2% increase in average hourly earnings.

Federal Reserve monetary policymakers are watching the labor market closely to determine whether the economy is strong enough for another increase in a key short-term interest rate.

The payroll and human resources company said in its monthly National Employment Report that the US added 253,000 private-sector jobs from April to May, up from the prior period's figure of 177,000 jobs gained.

But ADP's figures can vary widely from the government's, as they did in March, when they reported much stronger growth, and in April, when they indicated weaker job creation. "The rebound in April employment suggests these factors have largely played out and, alongside claims data that show some improvement in the separation side of the market, we look for another month of solid employment growth".

In a third report yesterday, the Labour Department said initial claims for state unemployment benefits jumped 13,000 to a seasonally adjusted 248,000 for the week ended May 27.

On Thursday, we got the first two labor market data points of the week, with the highlight coming from research institute ADP.

"We think it's consistent with continued progress in the economy and possibly a hike in September", said John Herrmann, director of interest rates strategy at MUFG Securities in NY.

A Labor Department official said claims for California, Hawaii, Kansas, Kentucky, Louisiana, North Dakota, Texas and Virginia were estimated because of the Memorial Day holiday on Monday.

As payrolls continue to climb, however, many employers are facing a shortage of available labor, as we saw in the Federal Reserve's latest Beige Book report this week. Almost 40 percent of the job cuts were announced by Ford Motor Co (F.N), according to the report.

Related news:

Hot News

Police release Woods DUI arrest video
Jun 02, 2017 - 10:46
The video publication followed photos showing Woods's damaged auto and audio from police radio released earlier in the day. Woods, 41, said in a statement he was not drinking alcohol, shooting down early tabloid stories that he was driving drunk.

Trump's Communication Director Resigns As A Reported White House Shakeup Begins
Jun 02, 2017 - 10:44
A senior administration official said Kushner was keeping his head down and focusing on work after the foreign trip . The official was not authorized to publicly discuss private thinking and spoke on the condition of anonymity.

isis-killer-beheading-video-story-top Warriors strongly favored in Las Vegas over Cavs for NBA Finals
Jun 02, 2017 - 10:44
First off, how does the addition of Kevin Durant impact this series over the long haul? For James, the Finals are an annual rite. Had he been given the chance, West said he would have taken the best player available, which is always his strategy.

isis-killer-beheading-video-story-top Trump, EPA chief meet ahead of decision on climate change
Jun 01, 2017 - 02:05
The head of the Environmental Protection Agency Scott Pruitt has overtly advocated quitting a deal he judges "bad" for America. Under the pact, the United States committed to reducing its emissions by 26 to 28 percent from 2005 levels by 2025.

White House says Trump expected to pull United States from Paris deal
Jun 01, 2017 - 01:56
Under the accord, the USA would have to cut economywide greenhouse gas emissions by about 80% by midcentury. The accord, agreed on by almost 200 countries in 2015, aims to cut emissions blamed for global warming.

isis-killer-beheading-video-story-top Trump hails signing of deals worth 'billions' with Vietnam
Jun 01, 2017 - 01:56
Prime Minister Nguyen Xuan Phuc (fook SOO-an nuh-WEE-ihn) is the first leader to visit the Trump White House from Southeast Asia. Phuc's meeting with Trump makes him the first southeast Asian leader to visit the White House under the new administration.

Is Apple Launching a New MacBook Pro?
Jun 01, 2017 - 01:49
As for the screen, the MacBook Pro 13 definitely has the highest resolution available in the laptop market at 2,560 x 1,600. Apple already announced a 2017 Mac Pro and promised a new 2018 Mac Pro that will deliver more power to professional users.

isis-killer-beheading-video-story-top Strickland, Harper issued suspensions following brawl
Jun 01, 2017 - 01:46
Each also has been fined an undisclosed amount, Major League Baseball announced on Tuesday. I don't remember thinking Harper did anything out of the norm, " Blevins said.

Wilkinson warns Lions not to repeat 'chaos' of 2005 in New Zealand
Jun 01, 2017 - 01:44
Cape Town - All Blacks captain Kieran Read hopes to be out of his cast by late next week as excitement builds over the Lions tour. For those of you who are unfamiliar with ROTL, it's a cycle tour that runs in conjunction with the Lions Rugby Tour.

Trump defends Kushner following Russian Federation investigation
May 31, 2017 - 16:48
He went on to proclaim that he can't speak for actions that haven't been confirmed and are based on anonymous sources. She refused to confirm Fox News' report about Kislyak actually being the one who sought the back channel.

isis-killer-beheading-video-story-top Philippine military: City siege was start of extremist plan
May 31, 2017 - 16:47
Majority have also complained that they have gone broke as their breadwinners are unable to provide for their daily needs. Philippines troops have carried out "precision attacks " with tanks and rocket launchers to target the radicals.

The G7 summit ends without U.S. commitment on Paris agreement
May 31, 2017 - 16:47
The delay provided opportunity for G-7 leaders and Pope Francis to press Trump to honor the U.S.'s environmental commitments. But it's now unclear whether the meetings will still take place if the commander in chief has already made up his mind.

Merkel hosts Indian leader Modi, looks to broaden world ties
May 31, 2017 - 16:47
Describing GST as the "most historic reform India ever done", he said the trend of reforms is spreading fast to all states. Trump's policies to revive U.S. economy have not just confused the world but also irked traditional allies in Europe.

isis-killer-beheading-video-story-top David de Gea wants Manchester United stay, fans react
May 31, 2017 - 16:46
The Spanish worldwide then signed a new long term deal, and has another two years left to run on his contract. When asked asked about when Red Devils fans can expect to see De Gea again, Mourinho said: "David?"