The U.S. Job Report And Its Effect On The Market And Economy
On Friday the U.S. Department of Labor reported that about
266,000 jobs were created in November, thereby meeting expectations. The job
creation was broad-based with the unemployment rate getting to a 5-decade low
at 3.1% and wage growth increasing by 3.1%. President Donald Trump celebrated
this victory on Twitter.
In this article, we would be looking at 3 stock analyst view
on how this job report would impact the market and economy.
J.P. Morgan Asset Management's Oksana Aronov, leader of the
firm's market strategy and alternative fixed income divisions said:
"We certainly have
a long way to go until inflation sort of enters the narrative in any meaningful
way, but I think that we've, as a marketplace, certainly in the fixed-income
space, we've completely discounted it as a risk. A stronger-than-expected print
is not going to bring the Fed in, but it can change the expectations in a
market where yields are so depressed."
Jason Trennert, the co-founder, chairman and CEO of Strategas
Research Partners found the economic strength somewhat ironic:
"It's just hard to
get inflation, in my opinion. All of the inflation is in financial assets, it's
not in goods and services. Listen, I think the irony here is that despite the
duration of the expansion, which is the longest expansion in postwar history,
we're not particularly late in the business cycle. Everyone has been saying
that we're late in the cycle. This suggests that ... we're not as late in the
cycle as we think."
Lori Henel, State Street Global Advisors' deputy global chief
investment officer, said:
"It was pretty
strong across the board, not just the print, but also some of the revisions
from past months. Look, we've been pretty encouraged about the global economy
all this year. We've seen improvement. Even in the dark of the summer when a
lot of other people were thinking that we were going to go into recession, we
sort of felt that the consumer and the services sector would help us kind of
power through. And this is just validation that we are in a bit of an upward
momentum here." homeowners who moved and sold their home during the year,
an important consideration when reporting the capital gain on the sale is the
cost basis of the purchase. If your home underwent renovations or similar
improvements with a useful life of more than one year, you can likely include
the cost of the improvements into the adjusted cost base of your home, thus
reducing your capital gain incurred on the sale and the resultant taxes."
With these reviews, Investing Port hopes to keep an eye on
the stock market and observe how the improved wage and jobs created will make
an impact.
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