Jobs report leaves markets uninspired (10/7/16)
Stocks traded in the red after September’s jobs report came in weaker-than-expected, but perhaps not weak enough to deter the Federal Reserve from raising rates at its December meeting.
The Dow closed 28 points lower, with 17 of its components declining; the S&P 500 Index declined 7; and the Nasdaq was down 14. Decliners outpaced advancers by about two to one on the NYSE and by nine to five on the Nasdaq. Treasury prices strengthened. Gold futures lost $1.10 to close at $1,251.90 an ounce. Crude-oil futures fell $0.63 to settle at $49.81 a barrel.
For the week, the Dow slipped 0.38%, the S&P 500 Index fell 0.67%, and the Nasdaq dropped 0.38%.
In other business news:
- U.S. employers added 156,000 new jobs in September, according to the Labor Department. The unemployment rate edged up to 5.0%; however, the increase is being viewed in a positive light, as it means that more individuals are getting off of the sidelines and attempting to get back into the workforce. Economists expected 170,000 jobs and an unemployment rate of 4.9%. Wages grew 0.2% in the private sector last month, bringing annual wage growth up to 2.6%.
- The British pound fell 6% to a 31-year low against the dollar in early trading in Asian markets before rebounding sharply. Overnight, the Financial Times reported that French President Francois Hollande is urging the European Union (EU) to take a hard stance in its negotiations with the United Kingdom over its exit from the EU; however, analysts believe that the flash crash of the pound was more likely the result of a fat finger trade during thin trading early in the session.
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For a few of you, a trip to IKEA may seem more like a trip through one of the levels in Dante’s Inferno rather than a level of a video game. But over the years, a number of game enthusiasts, including PBS’s Game/Show, have drawn parallels between the store and good video game design.
First of all, think about the layout of a Target. Straight aisles, defined areas—it’s pretty easy to run in, grab what you need and go. But IKEA seems like a maze. When you first step foot in the store, it’s a little overwhelming. But there’s a general winding path to follow. The main aisle curves about every 50 feet. We’re naturally inclined to want to see what’s around the corner, so the curve entices you to do that—a trick used in many first-person action games.
Like any good video game, even though there’s a main path, there are always little side adventures to take and treasures to find. Probably why over 60% of purchases made in the store are spontaneous.
A good video game can immerse you in a world and language all its own. Think of IKEA, think of meatballs; furniture and fixtures that would look at home in the U.S., Japan, or Sweden; and practically unpronounceable Scandinavian names like Fyrkantig, Grundtal/Norrviken, or Sparsam. (For those not completely immersed in the culture of IKEA, the names of pieces of furniture are typically names of Swedish places, chairs are men’s names, and children’s goods are animals.)
To beat a level, you usually have to make it past a major challenge. In this case, it’s making it to the giant warehouse where you have to 1) locate the aisle and bin of the item you’d like to purchase and 2) hope and pray it’s not out of stock. If you’re successful at that, you win!
Wait, wait, wait. You passed the level, but you haven’t beaten the game. Oh no. To beat the game, you h1ave to defeat the boss. In IKEA’s case, the boss level is getting your furniture home and assembling it. Like any good game, the boss has numerous weapons at its disposal. IKEA is the same, but its most effective ones are missing pieces and the dreaded “directionless directions”. But having spent an entire weekend last Christmas break with a living room full of dozens of boxes, I assure you, it can be done. Winner, winner, Swedish meatball dinner.
