Investing.com - The September jobs report revealed some cracks in the labor market Friday, but overall the market considered the numbers to be pretty solid.
Stock index futures rose after the report on relief after a week of miserable economic indicators, as much as anything else.
The report is “not weak enough to support the hypothesis of rapidly spreading economy-wide weakness ... but also not confirming that the domestic sector is immune from global pressure,” Allianz (DE:ALVG) Chief Economic Adviser Mohamed El-Erian tweeted.
The one outlier was wage growth, which was flat for last month. Year-over-year annual wage growth dropped to 2.9% from 3.2%.
That would usually be a boon those championing aggressive easing by the Federal Reserve, with no sign of wage inflation. But the chances of a rate cut this month actually dropped to 80.2% immediately after the report, according to Investing.com’s Fed Rate Monitor Tool.
One reason is certainly that an economy that is steadily adding jobs in the face of a lot of global economic headwinds doesn’t need a helping hand from lower rates just yet.
There is also the outlier in President Donald Trump.
Trump today tweeted touting the unemployment rate hitting a 50-year low. That may take some pressure of Fed Chairman Jerome Powell, who has been a target of Trump’s ire for not cutting rates to zero when the data looks negative and equities sell off.