BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager
Announced this morning, the economy added 263,000 jobs in April, more than the 190k estimate, and the unemployment rate fell two tenths to 3.6%, the lowest since the 1960’s. Average Hourly Earnings increased 0.2% for April and has increased 3.2% on an annual basis, both slightly less than forecasts. Overall, another strong headline jobs number with lower unemployment as more individuals are coming into to the labor force as Average Hourly Earnings remains near the cycle highs. However, strong jobs and higher wages have yet to push inflation measures higher, a consideration for the patient stance by the Federal Reserve on interest rates. With firm labor market conditions continuing, it appears difficult to justify a cut in interest rates which some have speculated. In all, bond yields are little changed following the report, after moving higher immediately following the release; equity futures are higher heading into the market open.
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