Stocks sold off yesterday ahead of key jobs data this morning, but they’re on the rebound in the early going now that we have the numbers. More on that in a minute.
As for other markets, crude oil, gold, and silver are modestly higher, while Treasuries are flattish and the dollar is lower.
On the news front...
That was a DOOZY of an August jobs report we got this morning – and it validates everything from the MoneyShow Market Minute updates we sent you earlier this week. First, the numbers...
- The US economy created 187,000 jobs last month, which was a bit above economist forecasts. But the numbers from the previous couple of months were revised lower by a combined 110,000. WEAKER.
- The unemployment rate spiked to 3.8%, far above the 3.5% forecast. WEAKER.
- Average hourly earnings growth slowed to 0.2% from 0.4% in July. That also missed the 0.3% expectation. WEAKER.
What does the data “mean”? The Federal Reserve wants the labor market to come off the boil. Chairman Jay Powell explicitly cited jobs and GDP as two economic “markers” he would watch closely to decide if more interest rate hikes are needed. This data falls firmly in the “No more Fed” category, which is music to Wall Street’s ears.
Source: US Bureau of Labor Statistics
In other news, what will happen with all the vacant office space in downtown New York...and dozens of other major metropolitan areas around the United States? This New York Times piece delves into that question, noting that there are 96 million square feet of office space up for lease in New York alone. One study predicts city office buildings will lose $50 billion in value as a result of the semi-permanent shift to hybrid work schedules and other issues.
