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Jobs Data Eased Recession Fears. What It Means for the Fed.

Markets Now Markets Deutsche Bank Dow Joes Industrial Federal Reserve NatAlliance Securities Andrew Brenner North America United States Economic Performance/Indicators Economic Growth/Recession Employment/Unemployment Figures Economic News Commodity/Financial Market News Content Types Factiva Filters C&E Exclusion Filter DB DBK.XE N/GENI N/IEI N/IEJ N/IEN N/MKT R/NME R/US Barrons.com Barrons Blogs COMP Dow Jones Industrial Average SPX CODES_REVIEWED Economy and Policy Markets Now Markets author Ben Levisohn author|Ben Levisohn author Ben Levisohn id Ben Levisohn name Ben Levisohn topicid 8022 rank 1 topicid barrons_display_brand BARMKTNOW barrons_display_brand|BARMKTNOW codetype BARRONS_DISPLAY_BRAND name Markets Now source MANUAL value BARMKTNOW code BARMKTNOW canbedisplaybrand true status modified barrons_display_subject BARMKTS barrons_display_subject|BARMKTS canbedisplaysubject true codetype BARRONS_DISPLAY_SUBJECT name Markets source MANUAL value BARMKTS code BARMKTS status modified co deut co|deut country US symbol DBK.XE displayname Deutsche Bank why occur extractedtext Deutsche Bank source FACTIVA seoname deutsche_bank countrycode US relevancerange low chartingsymbol STOCK/US/XNYS/DB fcode deut fullextractedtext Deutsche Bank ticker DB confidence 100 subcat com relevance 9 significance passing onlinesignificance passing-mention name Deutsche Bank confidencerange high exchange NYSE exchangeisocode XNYS codetype co code deut co Dow Joes Industrial co|Dow Joes Industrial fullextractedtext Dow Joes Industrial displayname Dow Joes Industrial name Dow Joes Industrial extractedtext Dow Joes Industrial source FACTIVA subcat com codetype co code dow_joes_industrial co Federal Reserve co|Federal Reserve fullextractedtext Federal Reserve name Federal Reserve extractedtext Federal Reserve source FACTIVA subcat gov codetype co code federal_reserve co NatAlliance Securities co|NatAlliance Securities fullextractedtext NatAlliance Securities displayname NatAlliance Securities name NatAlliance Securities extractedtext NatAlliance Securities source FACTIVA subcat com codetype co code natalliance_securities djn R/US djn|R/US significance prominent onlinesignificance prominent name R/US why about source FACTIVA fcode R/US codetype djn code r_us djn R/NME djn|R/NME name R/NME why lineage source FACTIVA fcode R/NME codetype djn code r_nme djn N/MKT djn|N/MKT codetype djn why about source FACTIVA code n_mkt name N/MKT significance prominent onlinesignificance prominent fcode N/MKT djn N/IEI djn|N/IEI codetype djn name N/IEI why lineage source FACTIVA code n_iei fcode N/IEI djn N/IEJ djn|N/IEJ codetype djn name N/IEJ why lineage source FACTIVA code n_iej fcode N/IEJ djn N/GENI djn|N/GENI codetype djn name N/GENI why lineage source FACTIVA code n_geni fcode N/GENI djn N/IEN djn|N/IEN codetype djn name N/IEN why lineage source FACTIVA code n_ien fcode N/IEN djn DB djn|DB significance passing onlinesignificance passing-mention name DB why occur source FACTIVA fcode DB codetype djn code db djn DBK.XE djn|DBK.XE significance passing onlinesignificance passing-mention name DBK.XE why occur source FACTIVA fcode DBK.XE codetype djn code dbk_xe editorial-seo-id dow-jones-industrial-average-rises-september-jobs-payrolls-report-unemployment-51570192922 editorial-seo-id|dow-jones-industrial-average-rises-september-jobs-payrolls-report-unemployment-51570192922 first_publish_headline The Dow Is Up Because September’s Job Report Eased Recession Fears first_publish_headline|The Dow Is Up Because September’s Job Report Eased Recession Fears flow Barrons.com flow|Barrons.com codetype FLOW name Barrons.com source MANUAL value Barrons.com code online status modified name Online title Product code Barrons.com flow Barrons Blogs flow|Barrons Blogs codetype FLOW source MANUAL title Product code Barrons_Blogs name Barrons Blogs value Barrons Blogs status modified headline The Dow Is Up After the September Jobs Report Helped Ease Recession Fears. Here’s What It Means for the Fed. headline|The Dow Is Up After the September Jobs Report Helped Ease Recession Fears. 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Here’s What It Means for the Fed. The Dow Is Up After the September Jobs Report Helped Ease Recession Fears. Here’s What It Means for the Fed. Dow Jones Industrial Average Rises as September Jobs Bolstered by Low Unemployment

The U.S. added 136,000 jobs last month, while the unemployment rate fell to 3.5%, a 50-year low. Jobs Data Eased Recession Fears. What It Means for the Fed.

The U.S. added 136,000 jobs last month, while the unemployment rate fell to 3.5%, a 50-year low. https://www.bls.gov/news.release/empsit.nr0.htm https://www.barrons.com/articles/dow-jones-industrial-average-drops-september-jobs-payrolls-report-preview-51570190219 https://www.marketwatch.com/story/another-poor-us-jobs-report-would-add-to-wall-street-gloom-heres-what-to-look-for-2019-10-02?mod=article_inline https://www.barrons.com/articles/service-side-of-economy-grows-at-slowest-pace-in-3-years-ism-finds-adding-to-recession-worries-51570181701 https://www.barrons.com/topics/markets?mod=BOL_HAMNAV&mod=article_inline&mod=article_inline&mod=article_inline&mod=article_inline&mod=article_inline&mod=article_inline&mod=article_inline&mod=article_inline&mod=article_inline mailto:Ben.Levisohn@barrons.com The Dow Is Up After the September Jobs Report Helped Ease Recession Fears. Here’s What It Means for the Fed. By Ben Levisohn Chip Somodevilla/Getty Images The Federal Reserve building in Washington, D.C.

9:32 a.m. The main U.S. stock indexes gained—reversing early losses—as the September jobs report showed a drop in the unemployment rate, which helped offset lower-than-predicted payroll growth.

The Dow Joes Industrial Average was up 141 points, or 0.5%, while the S&P 500 and Nasdaq Composite each gained 0.6%. All three were negative before the announcement.

If investors were hoping to get a definitive answer about the state of the U.S. economy from the September payrolls report, they must be disappointed. The U.S. added 136,000 jobs last month, fewer than the 145,000 predicted by economists according to FactSet, but not disappointing enough to confirm recession fears. July and August payrolls, meanwhile, were revised, helping to offset September's miss. To top it all off, the unemployment rate fell to 3.5%, better than estimates for 3.7%.

“As the manufacturing sector goes from bad to worse, from recession to depression, the rest of the economy seems to be holding up in the U.S.,” writes NatAlliance Securities’ Andrew Brenner.

Unfortunately, it might not be that simple. One reason given for Thursday’s rally back after a disappointing ISM services number was the fact that it makes an October rate cut by the Federal Reserve more likely. The jobs report does the opposite, writes Deutsche Bank’s Alan Ruskin. ”This is not the kind of data that makes for a particularly compelling case for a 25bp Oct cut,” he explains. “The Fed will have to dig a bit deeper than they would like to, to justify a cut.”

If they can justify one at all.

Markets Now is a quick take on what’s happening with the Dow Jones Industrial Average and other major market indexes. Don’t forget to check out the rest of Barron’s markets coverage.

Write to Ben Levisohn at Ben.Levisohn@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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