US employment fell in August, but the decline was far less than expected and private payrolls growth surprised on the upside, easing pressure on the Federal Reserve to prop up growth. Art Cashin, director of floor operations at UBS Financial Services, shared his insights on the report.
“The next watershed will be the 10am statement by the president, to see if he’s going to bring in new [stimulus] packages,” Cashin told CNBC.
“There was great speculation overnight that the reason he scheduled a meeting was that maybe the employment numbers were going to be very bad, and that’s what caused an overreaction.”
Cashin said traders are hoping that the Obama administration will come out with a suspension of the payroll tax and give companies that are hiring further incentive to do so.
“If they don’t announce that…if there is no Christmas package coming at 10am, then people may rethink the rally a little bit.”
Update: In his Friday speech, Pres. Obama said he was "confident" that the August jobs report was a positive if fragile sign. He said he'll address a package of new measures next week to boost US growth and hiring.
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Sept. 2, 2010)
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No immediate information was available for Cashin or his firm.