June 7, 2019

A Dismal Employment Report Is Great For Stocks?

The number of non-farming new jobs was weak in May as employers added a mere 75,000 jobs.  Normally, you would think that this would be bad for the economy and thus usually bad for stocks.  But what it has done is bolster the Federal Reserve’s case for cutting interest rates as soon as this month, a possibility that has given a lift to markets in recent days.

The unemployment rate was unchanged at a 50-year low of 3.6%, the Labor Department reported.

Economists surveyed by Bloomberg expected 178,000 job gains.

Here’s a kicker: Payroll gains for March and April combined were revised down by a total 75,000. March’s additions were revised from 189,000 153,000, and April’s, from 263,200 24,000.

Why is this so important?  The May employment report was highly anticipated because of recent speculation that the Fed could cut its benchmark rate for the first time in a decade as soon as this month, especially if the economy softens. The jobs report typically provides the best real-time gauge of the labor market and economy.

about the author:

Mike Shorr

Since 1994, Michael has been an on-the-floor market maker, Vice-President of Interest Rate Derivatives for Knight Financial Products and Director of Education and Options Instructor at Trading Advantage. He makes the oftentimes complex world of options and trading accessible to the novice and advanced trader alike. Michael has a Bachelor of Science degree in Statistics and Finance from the University of Illinois Champaign-Urbana. He presently is Director, Trader Education at ProsperTradingAcademy.

Read Similar Articles

https://www.prospertrading.com/scott-bauer-bizfirstam-100726/Scott Bauer: Why I’m Reluctantly Bullish on Today’s Market
October 8, 2026

Scott Bauer: Why I’m Reluctantly Bullish on Today’s Market

Scott Bauer joins Business First AM to share why he is cautiously optimistic while flagging a concentration risk hiding in the S&P.

Read Article
October 4, 2026

The Week Ahead: THE OCTOBER EFFECT

DOES IT NEED TO BE SPOOKY? Markets can be volatile, and no month illustrates that more clearly than October. From the banking panic of 1907 to Black Monday in 1987 to the depths of the 2008 financial crisis, some of the most dramatic single-day collapses in U.S. stock market history have one thing in common: […]

Read Article
https://www.prospertrading.com/scott-bauer-ibkr-podcast-093026/Scott Bauer on IBKR Podcast: Jobs, Rates, and Risks
September 30, 2026

Scott Bauer on IBKR Podcast: Jobs, Rates, and Risks

Rates are driving everything right now and Friday’s jobs report could swing October hike odds significantly. Scott Bauer joined the IBKR Podcast to break down what he is watching most closely, which sectors he likes heading into earnings, and the one underlying risk he thinks is not getting enough attention.

Read Article

Read Similar Articles

July 15, 2026

The Fed, Oil, and What Earnings Season Really Means

Scott Bauer joined the IBKR Podcast this week to break down what moved markets last week and what investors need to watch heading into the next stretch of earnings season. From lagging inflation data to big tech CapEx concerns, Scott did not hold back.

Read Article
July 5, 2026

The Week Ahead: Happy 250

The Dow rose more than ​1% to a record closing high on Thursday ahead of the long holiday weekend as a softer-than-expected U.S. ‌jobs report eased worries about interest rate hikes, while another sharp drop in chipmaker stocks weighed on the Nasdaq. The second half of 2026 kicked off this week much the same as […]

Read Article
June 28, 2026

The Week Ahead: Darn Inflation

A renewed sell-off in technology stocks grabbed headlines this week. The Nasdaq index fell 4.5%, closing lower 5 days in a row, led by a large 5.5% decline in the so-called Magnificent 7 mega cap names. Meanwhile, the post IPO exuberance around SpaceX appears to be fading, with shares now down 25% from their peak. […]

Read Article