Home StocksDow Jones Fed Officials See Strong Job Gains After Dismal April

Fed Officials See Strong Job Gains After Dismal April

by Paul Ebeling

#Fed #NFPs #jobs #inflation


“Fed officials have consistently maintained the view that inflation pressures should be transitory, and that the dismal April NFPs are a ‘fluke’ and do not expect the Fed to relax it dovish monetary policy“– Paul Ebeling

April’s disappointing employment report does not change the upbeat outlook for the US labor market due strong consumer demand, Fed officials said Wednesday.

“We still think, despite these frictions, that job growth will be strong,” Federal Reserve Bank of Dallas President Robert Kaplan said Monday in a TV interview, adding that employers reported problems in attracting workers despite offering higher wages. “You will see fits and starts like we saw here. We still think the trend is going to be strong job growth and recovery, particularly as leisure and hospitality sectors and others open up.”

A US Labor Department report published Friday showed just 266,000 Americans were added to NFPs in April, nearly 75% below the increase of 1,000,000 predicted by the forecasting consensus .

Mr. Kaplan’s confidence on the outlook for the US job market was echoed by other policy makers. San Francisco Fed chief Mary Daly declared: “I remain bullish about the future. But we’re not there yet, and we’re going to have some fits and starts.”

Charles Evans of Chicago said he was optimistic that despite the sluggish April report, the US labor market is “going to get back up to very strong numbers” in coming months.

Demand for businesses to hire is greater than the growth in employment,” he said. “We want to incentivize people to come back to the jobs they left or other jobs.

Wednesday, the benchmark US stock market indexes finished at: DJIA -681.50 to 33587.66, NAS Comp -357.75 to 13031.71, S&P -89.06 to 4063.04, the Russell 2000 (-3.3%) underperformed

Volume: Trade on the NYSE came in at 1.1-B/shares exchanged

HeffX-LTN’s overall technical outlook for the US major stock market indexes is Neutral to Bullish in here.

Gold and other commodity-related groups continue to show the most strength, especially as USD trends lower.

Bottom line: The equity market’s are seeing profit taking across the board as they consolidate off of their record highs leading to buying opportunities.  

  • DJIA +9.7% YTD
  • S&P 500 +8.2% YTD
  • Russell 2000 +8.1% YTD
  • NAS Comp +1.1% YTD

Looking Ahead: Investors will receive the Producer Price Index for April and the weekly Initial and Continuing Claims report Thursday.

Have a healthy, Keep the Faith!

You may also like


Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.