Bloomberg TVIn a quick note blasted out to clients, Jefferies strategist David Zervos expresses the same read on today’s jobs report as we did earlier, that this was “Goldilocks” a not-too-hot, not-too-cold report that was idea for the market.
If someone asked me to put together a fake jobs report that would be the most soothing to a frazzled market, it would have read pretty much as just released. The tick up in the u-rate, on a slightly higher participation rate, was a work of art. It moves us further away from the Evans rule trigger of 6.5, and more importantly the theoretical taper trigger of 7.1/7.3. Also, it adds a bit of job-seeking optimism to the mix as more folks are looking for work in better economic conditions. Then we add the 175k on payrolls – not too hot, not too cold. It shows that Fed policies are continuing to work nicely to create a sustainable recovery, but worries about QE “overheating” are way off the mark.
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