Announced this morning, the economy added 943,000 jobs in July, more than expected. The Leisure and Hospitality industry was strong adding 380,000 jobs, while the Retail Trade industry was relatively weak. The Unemployment Rate decreased five tenths to 5.4%, a larger decrease than expected. The Labor Force Participation Rate remained steady at 61.7% and Average Hourly Earnings increased 0.4% in July and is up 4.0% on an annual basis, both slightly better than expected. Average Weekly Hours at 34.8 was one tenth higher than the previous month. Overall, a strong report with a large increase in the headline number and a drop in the unemployment rate. Meanwhile, with a decent increase in jobs for the Leisure and Hospitality industry coupled with average hourly earnings ticking higher, it indicates that wages may be on the rise for those workers. These dynamics will bring inflationary pressures into focus and how the Federal Reserve may react and adjust their tone regarding accommodative policy in the weeks ahead. In all, the 10-year yield moved higher following the report and equity futures are mixed as we head into the market open.
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