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Investors react to weak June jobs report · THE DAILY BRIEF

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  Speaker 1: All ri take a look at the big board right now,
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  Speaker 1: investors reacting after the latest jobs report showing US employers
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  Speaker 1: added fifty seven thousand jobs in June. That's far below
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  Speaker 1: forecasts from analysts, but you see the market reacting up
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  Speaker 1: five hundred and ninety four points today. Let's take a
• 0:15
  Speaker 1: look at our interactive stock market heat map, brought to
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  Speaker 1: you by thin Viz, showing the top five hundred stocks.
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  Speaker 1: A nice mix of red and green, mostly green though.
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  Speaker 1: Today let's go lide down. CBS News producer Emily pan Dice, Emily,
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  Speaker 1: great to be with you. What do you make of
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  Speaker 1: today's jobs numbers? Hey, Lizabeth, So today's report was a
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  Speaker 1: completely fine jobs report, right as you mentioned that fifty
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  Speaker 1: seven thousand jobs fell short of economists expectations. But listen,
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  Speaker 1: growth is growth, and it's still higher than the average
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  Speaker 1: jobs added each month over the past twelve months, which
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  Speaker 1: is about thirty six thousand jobs. And you know, given
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  Speaker 1: everything that's been going on in the macroeconomic environment, we're
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  Speaker 1: still dealing with tariffs, we're dealing with a warre and
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  Speaker 1: a rom we're dealing with those high oil and gas prices.
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  Speaker 1: Given all of that, the fact that the economy added
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  Speaker 1: fifty seve tven thousand jobs, is still a good sign.
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  Speaker 1: One thing I do want to pay attention to in
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  Speaker 1: this report here, though, is that for the first time
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  Speaker 1: in a while, wages have fallen, have not kept pace
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  Speaker 1: with inflation. So inflation last month, we know, was popped
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  Speaker 1: a little bit four point two percent, driven by some
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  Speaker 1: of those high energy costs, and average hourly wages only
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  Speaker 1: rose three point five percent, So all those people out there,
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  Speaker 1: we've been seeing for a long time that consumer sentiment
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  Speaker 1: is not great. People don't feel good about the economy,
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  Speaker 1: and that's where some of that tension is coming in,
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  Speaker 1: is the discrepancy between how much you're taking home in
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  Speaker 1: your paycheck and how much you're paying at the store
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  Speaker 1: on those higher prices. Elizabeth and Emily, what could this
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  Speaker 1: bean for interest rates in the near future? Talking about affordability,
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  Speaker 1: You know, investors are still expecting a rates to hold steady,
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  Speaker 1: maybe a hike or two later in the year. You know,
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  Speaker 1: inflation has been going up. Bringing interest rates up as
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  Speaker 1: well is one way to help tame that inflation. But
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  Speaker 1: if the jobs picture continues as it's going, or perhaps
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  Speaker 1: gets a little bit worse, that's when we'll see the
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  Speaker 1: FED maybe start to reconsider holding rates steady and perhaps
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  Speaker 1: even if the job situation gets bad enough, perhaps even
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  Speaker 1: cut But I don't know that that's in the cards
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  Speaker 1: for the rest of the year. We'll have to kind
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  Speaker 1: of wait and see where things go. And also, fedcher
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  Speaker 1: Kevin worsh has talked about different ways to get inflation
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  Speaker 1: under control beyond just raising rates, So we'll have to
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  Speaker 1: see what he and the rest of the Federal Reserve
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  Speaker 1: Board decides in the coming months. Elizabeth, Emily Pand is
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  Speaker 1: great to be with you. Thanks so much for that. Okay,
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  Speaker 1: let's bring in CBS News political reporter Zach Huda Act. Zach,
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  Speaker 1: how is a Trump administration framing the weaker than expected
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  Speaker 1: jobs report?
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  Speaker 2: Here we Liz, they are as you could expect them,
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  Speaker 2: trying to frame this as a glass half full, not
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  Speaker 2: half empty situation. They were zeroing in on the positives,
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  Speaker 2: which is there was the job creation. It's just that
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  Speaker 2: the rate of job growth is slowed. So they're pointing
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  Speaker 2: to that. They're pointing to the stable rate of unemployment,
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  Speaker 2: and they're saying, look, there are jobs, why don't folks
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  Speaker 2: go out and take them? Here's we heard earlier from
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  Speaker 2: White House Economic Council Director Kevin Haslett. Here's what he
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  Speaker 2: had to say, Well.
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  Speaker 1: There are millions and millions of job openings, and so
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  Speaker 1: if people are frustrated that they got frustrated maybe because
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  Speaker 1: of Joe Biden's economy and left the labor market, they
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  Speaker 1: should come back in because there are jobs everywhere.
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  Speaker 2: So it's sort of a scenario where they're almost putting
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  Speaker 2: the onus on those who are unemployed. I don't know
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  Speaker 2: how that will play politically, but they're basically saying, look,
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  Speaker 2: the jobs are available, the unemployment is not our problem.
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  Speaker 2: That really doesn't change the fact though that the rate
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  Speaker 2: has slowed, and on its face, these are not positive
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  Speaker 2: numbers for the administration. So they will need to continue
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  Speaker 2: to do this kind of messaging on this to counter this,
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  Speaker 2: particularly going into a midterm year when many front line
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  Speaker 2: and members of Congress are going to be attached to
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  Speaker 2: the job numbers that the administration has overseen.
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  Speaker 1: Here, Zach, I want to pivot now to the war
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  Speaker 1: with Iran. We know the talks with Iran are on
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  Speaker 1: hold for at least a week for Iran's funeral commemorations
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  Speaker 1: for the late Ayatola but what's the overall sense of
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  Speaker 1: how negotiations are going up into this point.
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  Speaker 2: The latest messaging we're getting lays is that they're positive.
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  Speaker 2: We heard the President say that there is positive progress.
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  Speaker 2: We heard from the Katari's that there's been progress from
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  Speaker 2: the pakistanis that there's been progressed, and those have been
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  Speaker 2: key allies working as mediators for US and or on.
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  Speaker 2: So in some ways that is a good sign. The
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  Speaker 2: reality of the situation is that we remain in technically
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  Speaker 2: a cease fire, but we continue to have flare ups,
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  Speaker 2: We continue to negotiate without any clear this has been
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  Speaker 2: agreed to substantive measures that have been and publicly stated
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  Speaker 2: by both sides. So in a lot of ways, we're
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  Speaker 2: in this groundhog day cycle where we keep going back
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  Speaker 2: and forth between deadlines, threats to restart the fighting, as
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  Speaker 2: we heard from Vice President J. D Vant today, and
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  Speaker 2: then we go into a ceasefire again as long as
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  Speaker 2: it seems like the talks are positive. The former National
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  Speaker 2: Security Advisor H. R. McMaster had something to say on
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  Speaker 2: this earlier today.
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  Speaker 1: Iran is the one making the progress in these negotiations
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  Speaker 1: because they're receiving big paychecks. I mean the Gutories are
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  Speaker 1: about to unfreeze six billion dollars of assets.
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  Speaker 2: So I think the point there is that before this
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  Speaker 2: conflict started, there wasn't discussions of unfreezing those Iranian assets,
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  Speaker 2: and in fact, there weren't discussions of any kind of
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  Speaker 2: Iranian oversight of the strait of her moves. So in
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  Speaker 2: a lot of ways, Iran is in a stronger position,
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  Speaker 2: in the US is in a weaker position. I think
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  Speaker 2: the way the administration would respond, though, in the way
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  Speaker 2: the President has responded for those criticisms in the past,
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  Speaker 2: is to say, had we not intervened, Iran would have
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  Speaker 2: been on their way to a nuclear weapon, and that
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  Speaker 2: is a situation we simply cannot allow.
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  Speaker 1: Zak Kudak, thanks so much.