Daily Trader: Greater Impact of September Jobs Report #shorts

Good morning, everyone, and welcome to the Daily Trader. Jobs Friday, big number, but not big because it was big, big because it was mild. And that's the difference here. Let's go through the numbers first. Nonfarm payrolls, 29,000, lighter than expected. Right, they were looking for something between 85 and 90. Unemployment rate ticks up to 4.2%. Why is that not as bad as expected? Because the labor force participation rate ticked up two tenths from 61.6 to 61.8. More people in the labor market, the pool getting bigger, and unemployment ticking up. That's not as dire as you might think when unemployment ticks up. Now, private payrolls 46,000. That's less than expected. Again, I told you about labor force participation rate. Uh manufacturing, 9,000 jobs. Here's why the bond market reacted so positively. Average hourly earnings, wages for the month, up only a tenth of a percent, and year-over-year sliding even further now 3%. That number has come down significantly in the last several months. So, if you recap the week, it's important to look at the starting with the end of last week or this week when we got inflation data, right? Personal income and outlays. Remember the the PCE year-over-year came down from 3.7 to 3.4, three tenths on the year-over-year numbers. Core PCE came down from 3.3% to 3. So, the overall inflation picture is getting better. Add on to that that some strategic moves by by the European Union to release some reserves, especially in diesel, has pressure on the crude oil market, now down 4.3%. Now, here's what's working, why the market's not even up more this morning is yields that spiked lower earlier this morning have moderated a little bit. They're still down, make no mistake, but the 10-year yield is still 5.21. It got down to 5.16 I saw earlier this morning. So, even though all these other things are going down, the bond market's just not as volatile as some of the other parts of the market. So, that's important to watch, but this is all good news for stocks, maybe not the economy, but for stocks. That's our show for today. We'll see you next week with another edition of The Daily Trader.