The September jobs report, released Friday, shows fewer jobs added to the U.S. economy than expected. Though tens of thousands of more jobs could be lost in October with the federal government so far failing to bail out the airline industry, the chief economist for the National Economic Council at the White House Joe LaVorgna said there are signs the economy is in good standing, and its “self-sustaining” nature will help avoid disruptions to further recovery.
“The Atlanta Fed, just yesterday, revised up its estimate for Q3 GDP growth by almost 3 percent to 35 percent, which actually now keeps us on track, if you look then at some private sector forecasts, to recoup all of the pandemic-related output early next year,” he stated, acknowledging the recent positive COVID-19 diagnosis for President Trump and the first lady, while still promoting a positive economic outlook.
Last month, the U.S. added 661,000 jobs but came short of the Dow’s 800,000 projection; however, LaVorgna alleged that those figures were not a sign of lost momentum in economic recovery.
“The fact is, the economy has out surpassed consensus expectations by a mile,” he said.
“We’ve generated 11.4 million non-farm payroll jobs since April. We’ve actually generated 14.2 million jobs in the household survey since April, so we've got some very good numbers,” LaVorgna continued
While fewer jobs were added than expected, the U.S. unemployment rate beat projections, coming in at 7.9 percent. LaVorgna said the data showed job growth in every major industry but did note weakness in government jobs due to educators not returning to work like usual due to coronavirus adjustments.
When broken down by ethnicity, the data also showed that 12.1 percent of Black Americans were jobless. LaVorgna said while the White House would like to see unemployment drop across all groups, Black workers, in particular, have made financial strides.
“A couple of weeks ago we had detailed census data that showed record income gains in 2019 for all ethnic groups, with Black Americans, in particular, doing extraordinarily well,” he explained.
As 7.9 percent of Americans go without a job and businesses struggle to stay afloat, another round of stimulus funding is still possible, but according to LaVorgna, more negotiations will need to take place before a deal is made.
“If we can get that stimulus, if the Democrats move a little bit more to the center, then that’s going to be great because we’ll have extra confidence the economy will be even 'boomier,' if you will,” he told Cheddar.
Yesterday, House Democrats approved a $2.2 trillion stimulus plan that includes another round of $1,200 payments to American households, a renewed Payroll Protection Program for businesses, renewed enhanced unemployment benefits, and relief funds for state and local governments.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
