InternationalInvesting

Friday’s job numbers won’t be enough to slow the pending Fed rate hike

Some analysts say reports take pressure off the Fed to hike again in March -- here's why they still might
  • Friday's job data are contradictory on the surface -- lots of jobs but little gain in wages -- but the purchasing management numbers were hot.
  • New data is not remotely soft enough to stop the Fed, or even to slow it.

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

Financial markets are freezing like the scenes in sci-fi movies, jagged lines of frost hissing and crackling across trading floors. On election day the S&P (Standard & Poor) 500 was 2139. By December 20, elated by coming stimulus, tax cuts and regulatory relief, the index reached 2270. Two months later, add only 26 points -- 16 of those Friday in foolish hope that new data will hold back the Fed. The 10-year T-note on election day was 1.86 percent, three weeks later 2.45 percent, and today...2.45 percent. Jobs and purchasing reports Markets are in the business of second-by-second re-pricing of new information -- first, new economic data -- and then trying to evaluate the future. But economic data is inherently back-looking, so we hang on every numeral and dot from the most recent period. Stuff like revisions from mid-2016, we ignore altogether. The most-recent data each month are the job stats released on the first Friday, and the twin surveys of purchasing mana...