Keep Expectations Low For September Jobs Report

In an effort to create jobs the Federal Reserve Chairman Ben Bernanke launched a new round of quantitative easing three weeks ago. Will the Fed's plan of buying mortgage-backed securities and extending low interest rates work to reduce unemployment? It is still too early to determine but come Friday, Wall Street will certainly be watching the release of September's non-farm payroll numbers with interest. The consensus on Wall Street is that U.S. employers will have added 135,000 jobs in the month, which would be an increase for the 96,000 lift in August. The chief economist for North America at BNP Paribas, however, had a gloomier outlook, predicting a gain of only 75,000 jobs. Many of the indicators have displayed weaknesses. The number of firms hiring is down, and firms'appetites to add temporary workers have also fallen. Combine that with the uncertainty businesses feel and it's likely the jobs report will be poor. Another important indicator of economic health to look out for is today's ISM manufacturing index, which measures the health of the manufacturing sector. Economists expect the September index to stay below the critical 50% mark for the fourth month in a row. A reading below 50% indicates that manufacturing activity is shrinking.