Here’s one take on today’s Jobs Report: Jefferies strategist David Zervos says the jobs report is “perfect” for risk assets (like stocks).
The reason? There’s no pressure on the Fed to tighten sooner than necessary.
Here are the key details, as he sees them:
• A well over 100k miss on payrolls when you factor in revisions
• Durable goods and retail trade were each 30k lower for August vs July
• No sign of meaningful wage growth
• The U6 rate fell 0.2%, but U3 was unchanged
• The lower U6 rate, and consequent reduction in “slack”, was offset by a slack increasing lower participation rate.