By Augusta SaraivaBloomberg News(TNS)U.S. employers unexpectedly cut jobs in July and hiring in the prior two months was revised lower, suggesting the labor market is weaker than previously thought after surprising strength earlier this year. U.S. stocks opened higher and Treasury yields fell as investors reduced bets on a Fed rate hike in September. Local government employers shed nearly 60,000 jobs, almost entirely in education, which can be volatile in the summer as many teachers fall off of payrolls before returning again as the school year begins. The numbers don’t jibe with what we’re seeing more broadly for the labor market,” said Stephen Stanley, the chief economist at Santander U.S. Capital Markets LLC. “If the labor market had weakened as much as the June and July jobs report suggests, we’d be hearing it from Fed officials and the economy, and we’re not.”