Ep. 93B – A Growing Jobs Market?

The Kapital News
The Kapital News
Ep. 93B - A Growing Jobs Market?

This week witnessed a couple of jobs reports that stand in contradiction. On the one hand there is the ADP payrolls report that showed an increase in employment of 102,000 for the month of June. In contrast, the numbers from the Bureau of Labor Statistics (BLS), reported an increase of 224,000 jobs. Quite the discrepancy. Furthermore, if looking at the data in both reports – ADP claimed a loss of 18,000 jobs in the construction industry, while the BLS report noted an 21,000 job increase. How to make heads or tails of these numbers when rational arguments could be made for either number? In addition, the markets sold off on this surprise news of 224,000 jobs because it reduced the likelihood that the Federal Reserve will cut interest rates at the end of July. This appears to be the old case of, “good news is bad news.” We’ve seen this song and dance before. The Fed will also have a look at Q2 GDP figures and earnings reports and forward guidance from many companies that are set to announce their Q2 financial results, amongst other data points that may sway their month-end monetary decision. Further yet, we have President Trump continuing to attack the Fed and calling for them to follow China, Japan, and Europe in lowering interest rates. Despite the fact that the President has stated that the United States will never be a socialist nation, then one wonders why he is calling for the US to follow the policies of Communist China, stagnant Japan, and the socialists of Europe? It doesn’t make much sense to The Kapital News, but this is the world in we find ourselves. July is set to be an interesting month.

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