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Jobs Report Caps a Week of Positive Econ Numbers

Published: Friday, 3 Sep 2010 | 8:56 AM ET
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By: Bob Pisani
CNBC Reporter

S&P futures popped 10 points on nonfarm payrolls. August nonfarm payrolls, at minus 54,000, much better than expectations of a loss of 120,000, private payrolls up 67,000, also better than a gain of 44,000 expected. Also helping futures: a large revision to July, now a loss of 54,000 jobs, down from an earlier estimate of a loss of 131,000 jobs.

Average hourly earnings were triple expectations to 0.3 percent.

Yield on the 10-year Treasury has backed up to 2.755 from 2.622 percent yesterday.

More outflows from equity mutual funds this week. Another $5 billion, according to AMG. That follows $4.6 billion and $9.1 billion of outflows from the previous two weeks. $1 billion inflows into bond funds. Again.

Elsewhere:

1) Campbell Soup [CPB  Loading...      ()   ] Q4 earnings were inline with estimates. Sales were a bit light ($1.52 billion vs. $1.59 billion) and margins fell slightly as a result of greater promotional spending. Soup sales in the U.S. continued to struggle, falling 5 percent—offsetting strength in its beverage unit (sales up 12 percent).

For the current fiscal year the company just started, Campbell is expecting earnings of $2.59-$2.64 (shy of $2.65 consensus) on sales growth of 2 percent to 3 percent (vs. 2.3 percent consensus).

2) H&R Block [HRB  Loading...      ()   ] rises 4 percent after Q1 losses were narrower than expected (loss of $0.36 vs. loss of $0.41) as cost cuts brought some relief to the tax preparer's bottom line. Costs fell 5 percent, but not helping the country's labor situation, the company reduced its staffing by selling 127 offices last quarter.

3) Walgreen [WAG  Loading...      ()   ] reported August same-store sales rose 2.1 percent, led by a 2.9 percent rise in comparable pharmacy sales. Despite fewer flew cases of the flu and negative impact on sales from lower-priced generic drugs, the drugstore benefited from more prescriptions being filled. Same-store sales of general merchandise, however, rose a meager 0.7 percent as traffic fell 0.8 percent.

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