Jobs report redux:
?? +59,000 jobs
?? +51,000 jobs
?? +29,000 jobs
?? +24,000 jobs
Score: ☺️ http://t.co/z9xNQJA25N— CNN Business (@CNNBusiness) March 6, 2015
“The U.S. economy added 295,000 jobs in February, a strong gain that beat expectations by a mile. Unemployment fell to 5.5%.” You would expect stocks to surge on the strong employment numbers. Instead the S&P 500 fell 1.4% on Friday. Penetration of support at 2080 warns of a correction.
I can only ascribe this to fear of a rate rise. The stronger the employment data, the closer the prospect of the Fed raising interest rates. But Janet Yellen is likely to err on the side of caution, only raising rates when she is sure that the economy is on a sound footing and inflationary pressures are rising. That is far from the case at present, despite the good job numbers.
Chart: So much for "wage pressures" – pic.twitter.com/yGh9NbqwQa
— (((The Daily Shot))) (@SoberLook) March 6, 2015
There is plenty of short-term money in the market, however, that seems to think otherwise.