Friends
Today’s jobs report was another softer number than expected. Only 22,000 jobs were created in August vs. the 75,000 expected. The unemployment rate ticked up to 4.3%. As we have noted for a while now the unemployment picture in the US has been weakening for some months. It’s not a disaster, but most likely enough to allow the Fed to start lowering the Fed Funds rate.
Stocks rallied early on the news, but changed course and lost ground as the trading session unfolded. By the close the Dow Jones Industrial Average was down 220 points to finish the day at 45,400. The S&P 500 was down 20 points to close at 6,481. The Nasdaq Composite Index was down 7 points to close at 21,700. Gold was up $36 to trade at $3,643 per ounce, while oil was down $1.45 to trade at $62.03 per barrel WTI.
It almost appears certain now that the Fed will lower rates at this month’s FOMC meeting. The question is whether that is already priced into stocks. We’ll ponder that while marinating some ice cubes over the weekend.
Have a great weekend everyone.
