Why The Jobs Report Doesn't Change Anything

New york stock exchange tradersREUTERS/Shannon StapletonTraders work on the floor of the New York Stock Exchange October 13, 2008.

The market isn’t moving much after today’s jobs report.

And it makes sense, despite the strong top-line numbers, this doesn’t change much.

First of all yes, the main numbers were very strong. The 288K new jobs gained was well ahead of expectations.

And the unemployment rate collapsed to 6.3%, which is the lowest in 5.5 years.

But there are all kinds of holes to poke in the story. For one thing, the strong gains could be partly the result of a snapback from a weak winter.

And the labour force participation tanked.

And there was no acceleration in average hourly earnings, which means there’s no new pressure on the Fed to tighten.

So we have good numbers, but no real change in the trajectory of the economy and no new pressures on the Fed.

So no real reason for markets to do much.

For more on today’s jobs report, see here.

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