Tackle Today: The Job Market is Flexing
October 7, 2022
«September payrolls rise by 263,000.»
Traders,
We have been in the “good news is bad news” part of the cycle. This morning’s action is the latest evidence. The September employment report showed unemployment falling to 3.5% while payrolls increased by 263,000 for the month. While the amount of new jobs gains did miss expectations (275,000), the unemployment rate of 3.5% was below the 3.7% forecast.
Meanwhile, wage numbers were robust, with average hourly earnings increasing 0.3% for the month and 5% from a year ago.
Remember, the Fed is trying to slow the economy, and it likely requires some job loss. Unfortunately, the labor market remains robust, suggesting they will continue on their historic pace of racing rates. The market continues to price in another 75 basis rate hike in their next meeting on Nov 2nd.
Needless to say, the market did not like this report and is careening lower. With that, another bounce attempt has failed.
Video Of The Day: Exiting, Adjusting or Hedging a Bear Call Spread gone bad
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Chart of the Day: CME FedWatch Tool
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Cash Flow Club Replay
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Halftime Report 12:30 PM EST
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