• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Yields Soar on Strong Jobs Report
Stock

Yields Soar on Strong Jobs Report

by October 6, 2023
by October 6, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

From a bullish perspective, I was hoping to see the “goldilocks” jobs report, one which still showed job growth, but came in below consensus estimates. The thought there is that the Fed would see that its rate-hiking campaign was working and the economy was slowing. Instead, we saw a much-larger-than-expected jobs number, 336,000 vs. 160,000. Immediately, futures fell from positive to negative, and we’ll likely be experiencing price action today that tests, if not pierces, recent price lows across our major indices.

But were there any silver linings? Well, actually yes. The obvious is that our economy remains resilient, keeping alive the possibility of a soft landing. A big decrease in jobs and a negative number might have altered that potential outcome. Second, the unemployment rate was expected to drop from 3.8% to 3.7%, but instead remained at 3.8%. Also, average hourly earnings, which is watched by the Fed for further pressure from wage inflation, remained unchanged from the prior month at +0.2%, lower than the +0.3% rise that was forecast.

So while the headline jobs number may have spooked bond investors initially, it’ll be interesting to see the reaction as the rest of the day unfolds and, of course, next week. The September PPI and CPI will be released next Wednesday and Thursday, October 11th and 12th, respectively.

The monthly core CPI is what we should watch most closely and here’s a chart that shows the direction it’s been heading:

Remember, not too long ago, Fed Chief Powell said that the Fed wanted to see a consistent move lower towards its 2% target. Are you reading the above chart differently than me? Not only have we seen the annual core rate of inflation fall from 6.7% to 4.4% in one year, but we’ve also seen the monthly change fall all the way back into its 21st century “normal” range. I can’t help but believe that if next week’s September Core CPI reading comes in at or below 0.4%, we’ll see the start of a Q4 stock market rally, if it hasn’t already begun by then.

On Monday, in our FREE EB Digest newsletter, I’ll be highlighting a chart that says inflation is NOT a problem, despite what the Fed might suggest. If you’d like to see this chart and you’re not already an EB Digest free subscriber, simply CLICK HERE to enter your name and email address. There’s no credit card required and you may unsubscribe at any time.

Happy trading!

Tom

You Might Also Like
  • Equities Struggle in Strong “NoGo” as Materials try to Curb the Damage
  • MarketCarpet Report: Stock Market Remains Resilient With Dow Notching a Record Close
  • Do Profit Targets Add Value to a Strategy?
  • Stock Market Rally Fizzles – What to Do Now
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Entering the 4th Presidential Year
next post
Stock Market Ends Week on Positive Note; Market Internals May Be Turning Bullish

You may also like

GNG TV: Goodbye Growth and Hello Cyclicals

July 28, 2023

Earnings Season in Full Swing: What You Can Expect

July 15, 2023

Major Market Shift As Week Ends Strong!

August 24, 2024

Shopify Stock Shatters Expectations: What You Need to Know About...

November 3, 2023

HUGE NEWS! Our Most Important Site-Wide Product Release EVER +...

February 3, 2024

Equities Remain in Strong “Go” Trend as Communications Begin to...

September 30, 2024

Three RRGs to Keep You on Track

December 19, 2024

A Tale of Two Semiconductor ETFs – Why is SMH...

November 19, 2024

MEM TV: Major Market Shift After Fed Comments

February 4, 2023

New SPX Correction Signal! How Long Will It Last?

March 19, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025
    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025
    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,630 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,576 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,169)
    • Investing (538)
    • Stock (2,661)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025
    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,169)
    • Investing (538)
    • Stock (2,661)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Major Stock Indexes Are Faltering

    January 19, 2023

    Double Top Forming in Growth vs....

    April 6, 2024

    The SCTR Report: Carvana Stock Makes...

    August 5, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here