Well the employment report was about as close to neutral for the economy as you can get. The 136,000 shows a recession while the rate of unemployment at 3.5% shows that most folks looking for a job have a job.
Some folks have mentioned that they ignore these types of reports, and generally we agree, but this time there was real potential of market fireworks if the numbers were extremely soft or extremely hot.
Of course after falling 800 Dow points earlier in the week it didn’t take much for traders to ramp up the equity prices. On the face of the numbers I would look for modest gains–but 1% is a bit euphoric. Interest rates are calling BS on employment as the 10 year is off 2 basis points.
Well the weekend is here so I look forward to getting lots of work done–it never ends.