- Advertisement -Newspaper WordPress Theme
InvestmentsU.S. job growth slows sharply in September By Reuters

U.S. job growth slows sharply in September By Reuters


© Reuters. FILE PHOTO: A girl enters a retailer subsequent to an indication promoting job openings at Times Square in New York City, New York, U.S., August 6, 2021. REUTERS/Eduardo Munoz/File Photo/File Photo

(Reuters) – U.S. employment elevated far lower than anticipated in September amid a decline in authorities payrolls, however hiring may decide up in the months forward as COVID-19 infections subside and other people resume the seek for work.

MARKET REACTION:

STOCKS: S&P e-mini futures initially dipped, however then recovered and had been final up 0.2%.

BONDS: The yield on the benchmark 10-year word dipped and was final round 1.57%

FOREX: The fell and was final down 0.1%

COMMENTS:

GARRETT MELSON, PORTFOLIO STRATEGIST AT NATIXIS INVESTMENT MANAGERS SOLUTIONS, BOSTON

“The bottom line is that we’re certainly adding jobs here, probably not at the pace we’d like to see just yet.

“It’s not a lot that the Fed’s on autopilot. It’s that they have been very clear and constant that it’s just about time to begin the tapering course of. They’ve been telling markets it’s on the horizon for months now.”

“I actually do not assume this modifications the outlook for tapering. A weak print would possibly change the tempo nevertheless it would not change the beginning date.”

KATHY LIEN, MANAGING DIRECTOR, BK ASSET MANAGEMENT, NEW YORK

“I think that the Federal Reserve made it very clear that they don’t need a blockbuster jobs report to taper in November, so while you’re seeing a little bit of a pullback in the dollar, I think the Fed remains on track.”

RUSSELL PRICE, CHIEF ECONOMIST, AMERIPRISE FINANCIAL SERVICES INC, TROY, MICHIGAN

“This is a stronger report than on first appearance. Sectors other than education still performed pretty well. Manufacturing had a good month despite all the supply constraints it continues to suffer. In fact, the motor vehicle sector dropped 6,000 jobs due to temporary layoffs and construction added 22,000. Even retail gained a strong 56,000.”

CARL TANNENBAUM, CHIEF ECONOMIST, NORTHERN TRUST, CHICAGO

“My take: the Fed hoped for a quantity giant sufficient in order that their choice to start tapering final month could be a straightforward one. Now, the discussions on November 2-3 could also be harder; and the market must take care of some extra uncertainty.”

SAMEER SAMANA, SENIOR GLOBAL MARKET STRATEGIST AT WELLS FARGO INVESTMENT INSTITUTE, ST. LOUIS

“Payrolls knowledge got here in weaker than anticipated, however the general development of an bettering labor market stays intact.”

“The internals additionally recommend some underlying power with common weekly hours ticking up and wages staying agency.”

“The continued therapeutic ought to proceed to underpin consumption and financial growth.”

“We would proceed to advise traders to get totally invested, favor shares over bonds, and extra cyclical sectors over defensive ones.”

MAZZEN ISSA, SENIOR FX STRATEGIST, TD SECURITIES, NEW YORK

“Wages were pretty firm, the unemployment rate dropped, but that came of the drop of the participation rate, so at the end of the day is it really going to change the Fed’s bias to deliver taper next month? No. We think they are pretty committed at this point to following through on that.

“I think in terms of the market reaction, at least on the rates side, it is perhaps a little bit more problematic for the long end, just given how we’ve traded in recent days.”

KATHY JONES, CHIEF FIXED INCOME STRATEGIST, SCHWAB CENTER FOR FINANCIAL RESEARCH, NEW YORK

“Obviously, the headline payroll number was on the soft side, but with the upward revisions to the previous two months, I would say it was a good enough report or a decent report to qualify for the Fed to start tapering.”

“It really doesn’t change the trajectory of where (the Treasury market is) going. We’ve had a steeper yield curve, rising yields, expectation for the Fed to start tightening sometime in 2022 — all that seems to be intact. I’m not seeing a huge enough change in the Treasury market to signal that people have changed their views.”

RYAN DETRICK, SENIOR MARKET STRATEGIST, LPL FINANCIAL, CHARLOTTE, NORTH CAROLINA:

“Tapering is likely still going to happen this year. This weak number doesn’t push the Fed to need to taper any sooner. It was a weak number, but it wasn’t a horrible number. Maybe a horrible number could have delayed the potential tapering but again, with other parts of the economy still rather healthy, tapering is likely on target for later this year still.

“October is traditionally very risky. ..Today’s quantity is a disappointment, however I believe most individuals count on in all probability will get just a little greater revision in a month after we’re again right here. Our take is near-term, count on the curler coaster to proceed. Yes, we have prevented the debt ceiling considerations, however earnings begin subsequent week — that is going to be extraordinarily vital.”

RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY

“I believe we’re in a wierd place in phrases of the market in the present day. We have investor concern about charges rising too shortly. And we’ve got investor concern concerning the financial system being too weak. You know in all probability solely a kind of issues is true.

“It has been true now for the last few years, that individual numbers, unless they’re extreme outliers, have no true effect on short term policy. I think the Fed has decided that the best course for keeping markets stable, is a very well telegraphed and consistent policy.

SCOTT ANDERSON, CHIEF ECONOMIST, BANK OF THE WEST, SAN FRANCISCO:

“I think it just barely clears Powell’s hurdle of “decent”. I still think a November taper announcement is still the most likely path for the Fed.

“The FOMC taper timing shouldn’t swing on just one financial knowledge level. The Fed will think about a broad cross-section of knowledge, together with inflation, wage growth, and labor scarcity points.”

SCOTT BROWN, CHIEF ECONOMIST, RAYMOND JAMES, ST. PETERSBURG, FLORIDA

“All in all it is still consistent with continued job growth overall. The Fed has cited sustained improvement in labor market for tapering. This adds to the cumulative evidence. It may not be as strong as we hoped but it is still showing signs of improvement.

“The markets actually have a tough time wanting past the headline quantity, however that is seasonally adjusted situation with schooling. It should be just a little disappointing, however it is just month.”

PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK

“These numbers are disappointing. The falling (labor market) participation rate explains why the unemployment rate dropped. But the bottom line is this is weak data.

“This is a disappointing number and it’s being accompanied by higher wage costs and that’s pointing to higher wage inflation down the road. It’s not likely to derail the Fed’s tapering.”

SHAWN CRUZ, SENIOR MARKET STRATEGIST AT TD AMERITRADE IN JERSEY CITY, NEW JERSEY

“I don’t know that this really puts the Fed in a very good spot for having a clear-cut way to go out there and start tightening policy, at least the way this report is looking. The one caveat that could come with this report is the survey week is early September and that is where we were still having some pretty major concerns with the Delta variant.”

(Compliled by the worldwide Finance & Markets Breaking News crew)

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exclusive content

- Advertisement -Newspaper WordPress Theme

Latest article

More article

- Advertisement -Newspaper WordPress Theme