We got a nice set of June jobs data this morning.
Stock futures rallied further after their release. Despite the
low volume of a holiday week, the markets look to buy and not
First, the U.S. unemployment rate stayed unchanged at
7.6%. This is good news for those who watch the Fed and its
taper concerns. Unemployed persons, at 11.8 million, stayed
unchanged for June too. Both measures show little change since
Second, stocks, earnings, and companies saw nearly +200K in
job adds for not only June, but also in revised numbers for April
and May. This threshold measure of strong business activity
will lift up GDP forecasts if it continues.
Solid job adds tell us why the U.S. stock market held up the
last few months. The steady pace of improvement in jobs says
"Stay the Course" is the best route to go for management of the
Total nonfarm payrolls increased by +195,000 in June, in line
with the average monthly gain of +182,000 over the prior 12
months. April was revised from +149,000 to
+199,000. May was revised from +175,000 to +195,000.
Service industries are leading the way:
Leisure and hospitality added +75,000 jobs.
Employment in professional and business services rose +53,000.
Retail trade employment increased +37,000.
Health care gained +20,000.
Finance rose by +17,000. Credit (+6,000) and insurance (+6,000)
Sequestration is also not taking a huge bite out of jobs going in
the other direction.
Construction and manufacturing appear to be in a pause of activity
What Was Your Takeaway?
Does good jobs data put the stock market back on a bullish
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