September 6, 2019

The Job Report Was Worse Than It Appeared

The Non-Farm Payroll report came out this morning and it was not great.  Nonfarm payrolls increased by 130,000 last month, which fell short of Wall Street estimates for 150,000.  But that is not the entire story.

The federal government hired 25,000 temporary workers in preparation for the 2020 Census in August, giving the overall jobs gain a big bump.

Employment in federal government rose by 28,000 in total in August, the Labor Department said Friday. Private-sector employment was up by only 96,000, the lowest pace since February.

The weakness largely came from the retail sector, which saw a net decline in workers of 11,100 in August alone. Trade, transportation and utilities also lost 11,000 jobs, and mining and logging lost 5,000 positions.

“The weaker than expected job gains do make sense when looking at yesterday’s ISM and Markit figures on employment and just understanding how businesses respond to the slowing pace of growth and trade worries,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “Companies have taken a time out on hiring until visibility becomes less cloudy, it’s only prudent.”

The overall labor market is still in good shape. The unemployment rate stayed at 3.7% as expected, and wage growth remained strong, with average hourly earnings increasing by 0.4% for the month and 3.2% over the year.

Beside the big job additions ahead of the 2020 population count, professional and business services also added 37,000 jobs. Health care contributed 24,000 to the total number and financial services rose by 15,000.

Follow me on Twitter @MikeShorrCBOT

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

September 30, 2020

Bad News For NKLA Can Be Good News For NIO

  We had a great example of a swing buy entry in NIO, Inc., the electric car company (Ticker: NIO). It’s based on a break out pattern on an hourly chart and confirmed with a daily chart.   Click the video below to learn more details: Grab a free day pass to one of our live […]

Read Article
September 29, 2020

The Similarities and Differences Between VIX and VXX

The VIX and VXX are both very popular trading vehicles for trading volatility.  But, unlike the perceptions of many traders, they are not exactly interchangeable.  There are many similarities and more importantly, some very important differences. Click the video below to learn more details: Grab a free day pass to one of our live signal […]

Read Article
July 29, 2020

Is JPM Morgan Poised For Its Next Leg Up?

  We believe that some banks are in a position to make the next leg up?  Why? You ask.  Unlike your conventional banks, some banks like Goldman Sachs, JP Morgan, Citibank and, Morgan Stanley have resources that many conventional banks do not.  They have MASSIVE trading entities.  They are not simply a place to park […]

Read Article

Read Similar Articles

September 30, 2020

Bad News For NKLA Can Be Good News For NIO

  We had a great example of a swing buy entry in NIO, Inc., the electric car company (Ticker: NIO). It’s based on a break out pattern on an hourly chart and confirmed with a daily chart.   Click the video below to learn more details: Grab a free day pass to one of our live […]

Read Article
September 29, 2020

The Similarities and Differences Between VIX and VXX

The VIX and VXX are both very popular trading vehicles for trading volatility.  But, unlike the perceptions of many traders, they are not exactly interchangeable.  There are many similarities and more importantly, some very important differences. Click the video below to learn more details: Grab a free day pass to one of our live signal […]

Read Article
August 4, 2020

TSLA Inside Bar Entry

An inside bar is just what the name implied.  It is a bar that is “inside” of another bar.  We use a daily chart for this approach.  So the high from two days ago is higher than the high from one day ago and the low of two days ago is lower than the low […]

Read Article