The U.S. Job Report And Its Effect On The Market And Economy

On Friday the U.S. Department of Labor reported that about 266,000 jobs were created in November, thereby meeting expectations. The job creation was broad-based with the unemployment rate getting to a 5-decade low at 3.1% and wage growth increasing by 3.1%. President Donald Trump celebrated this victory on Twitter.

In this article, we would be looking at 3 stock analyst view on how this job report would impact the market and economy.

J.P. Morgan Asset Management's Oksana Aronov, leader of the firm's market strategy and alternative fixed income divisions said:

"We certainly have a long way to go until inflation sort of enters the narrative in any meaningful way, but I think that we've, as a marketplace, certainly in the fixed-income space, we've completely discounted it as a risk. A stronger-than-expected print is not going to bring the Fed in, but it can change the expectations in a market where yields are so depressed."

 

Jason Trennert, the co-founder, chairman and CEO of Strategas Research Partners found the economic strength somewhat ironic:

"It's just hard to get inflation, in my opinion. All of the inflation is in financial assets, it's not in goods and services. Listen, I think the irony here is that despite the duration of the expansion, which is the longest expansion in postwar history, we're not particularly late in the business cycle. Everyone has been saying that we're late in the cycle. This suggests that ... we're not as late in the cycle as we think."

 

Lori Henel, State Street Global Advisors' deputy global chief investment officer, said:

"It was pretty strong across the board, not just the print, but also some of the revisions from past months. Look, we've been pretty encouraged about the global economy all this year. We've seen improvement. Even in the dark of the summer when a lot of other people were thinking that we were going to go into recession, we sort of felt that the consumer and the services sector would help us kind of power through. And this is just validation that we are in a bit of an upward momentum here." homeowners who moved and sold their home during the year, an important consideration when reporting the capital gain on the sale is the cost basis of the purchase. If your home underwent renovations or similar improvements with a useful life of more than one year, you can likely include the cost of the improvements into the adjusted cost base of your home, thus reducing your capital gain incurred on the sale and the resultant taxes."

With these reviews, Investing Port hopes to keep an eye on the stock market and observe how the improved wage and jobs created will make an impact.