The Morning View: January 10, 2020

  • January 10, 2020

Senior Vice President / Portfolio Manager

Announced this morning, the economy added 145,000 jobs in December, less than forecasts. Construction and Retail Trade were strong, while Manufacturing was weak. The Unemployment Rate held steady at 3.5% and Average Hourly Earnings increased only 0.1% in December and 2.9% on an annual basis, less than forecasts. Average Weekly Hours Worked was one tenth lower at 34.3 and the Labor Force Participation Rate was unchanged from the previous month at 63.2%. Overall, a weak headline number with continued low unemployment. Average Hourly Earnings were also weak suggesting there will be limited upward pressure on inflation from wages. The Federal Reserve likely remains on hold with their policy and has additional justification to remain accommodative with low rates and increases to their balance sheet. In all, bond yields ticked lower following the report and equity futures are higher heading into the market open.

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