Astonishingly strong US jobs report sends stocks wavering
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Re: Astonishingly strong US jobs report sends stocks wavering
#2Hopefully this brings back the (a) strong(er) dollar, so we could balance market losses via euro acquisitions (as it was the case a few months ago)
Re: Astonishingly strong US jobs report sends stocks wavering
#3To me the headline says it all. Those workers, being in demand, asking for higher wages. What about our profits! We need a level of desperation in our work force, at least that caused by 4% unemployment, if we can expect to maintain the wealth gap that has been built up over the last years!
(If it's not clear from the above, personally I am in favor of low unemployment and higher income equality.)
Re: Astonishingly strong US jobs report sends stocks wavering
#4Still too few participants and too much (expensive) training required…
Maybe, I dunno, we could raise taxes to contract demand from those giant corporations earning record profits? (I know the FED doesn’t have this power)
Raise taxes on corporate profits I mean
Re: Astonishingly strong US jobs report sends stocks wavering
#5I can't read the article, so this is one of those shoot from the hip comments.
With that health warning out of the way, I am surprised that a strong jobs report would sink stocks, unless those stocks expected to be able to get some benefit from a weak jobs report like slowing the increase in interest rates, or a cheaper labor market because there were lots of tech workers recently laid off and would therefore have downward pressure on their salaries?
Strong jobs should provide confidence. Maybe just maybe we aren't going to have a big recession any second.
Re: Astonishingly strong US jobs report sends stocks wavering
#6Considering that most of the growth was in leisure/hospitality, I interpret this move as the official "end" of the lockdown era. We have achieved full reopening/replacement of the bars, restaurants, and hotels that shut down during COVID, who proceeded to hire back all their low wage service workers. This explains the explosion in job growth with a stagnant avg hourly earnings rate - the new jobs are mostly low wage jobs!
This might be what the fabled "soft landing" looks like.
Re: Astonishingly strong US jobs report sends stocks wavering
#7I can't read the article, so this is one of those shoot from the hip comments. With that health warning out of the way, I am surprised that a strong jobs report would sink stocks, unless those stocks expected to be able to get some benefit from a weak jobs report like slowing the increase in interest rates, or a cheaper labor market because there were lots of tech workers recently laid off and would therefore have do…
> unless those stocks expected to be able to get some benefit from a weak jobs report like slowing the increase in interest rates, or a cheaper labor market because there were lots of tech workers recently laid off and would therefore have downward pressure on their salaries?
This is the point. The Fed has been very explicit lately that they've raised interest rates in order to depress wages. They said the quiet part out loud.
Re: Astonishingly strong US jobs report sends stocks wavering
#8To me the headline says it all. Those workers, being in demand, asking for higher wages. What about our profits! We need a level of desperation in our work force, at least that caused by 4% unemployment, if we can expect to maintain the wealth gap that has been built up over the last years! (If it's not clear from the above, personally I am in favor of low unemployment and higher income equality.)
You should have read the article. The fear is that we are going to see yet another round of interest rate hikes to slow down inflation.
Unemployment (according to the article) is also closer to 3% than 4 at the moment.
Re: Astonishingly strong US jobs report sends stocks wavering
#9I feel like while there is a correlation between trends in the stock market and the general economy'a well-being, a lot of these kind of stories can be explained by remembering they are correlated but not perfectly. According to the article, this is on fears of fed interest rate hikes.
It's easier to accept the stock market has it's own logic which may not necessarily mean what is good for the economy or not.
Re: Astonishingly strong US jobs report sends stocks wavering
#10To me the headline says it all. Those workers, being in demand, asking for higher wages. What about our profits! We need a level of desperation in our work force, at least that caused by 4% unemployment, if we can expect to maintain the wealth gap that has been built up over the last years! (If it's not clear from the above, personally I am in favor of low unemployment and higher income equality.)
People employed can afford to buy stuff though, which also increases profit. The simpler reason is that it means that people believe Fed will read this as a license to not have to slow down rate increases, which will hurt stocks.