Previous Trading Days Events 05 Jan 2024

The U.S. reported that firms employed more people than expected in December while wages improved, causing a surprise in the markets and doubt about the rate cut forecasts. Nonfarm payrolls increased surprisingly by 216K jobs last month versus the lower expected figure of just 168K. The unemployment rate was unchanged at 3.7.

Despite two months of downward revisions in the payroll numbers, this report suggests that with the unemployment rate remaining at 3.7 and hourly wages continuing to surprise to the upside, the economic backdrop is solid and provides a strong cushion for continued consumer spending. The probability of an interest rate cut at the March 20 Fed meeting, which had been over 80 just a couple of weeks ago, has dropped precipitously to below 60 following this mornings payroll print. Quincy Krosby, Chief Global Strategist for LPL Financial, Charlotte, North Carolina.

Its a very favourable jobs report. Nonfarm private payrolls, the core measure of employment, was well above expectations, and there was a downward revision to the prior period, but its still a very strong number for the month of December. It shows that despite higher interest rates, the economy continues to percolate along, and its a very favourable environment for businesses. It should help the jobs picture more when the Fed does reduce rates. Tim Ghriskey, Senior Portfolio Strategist, Ingalls Snyder, New York.

The topline payrolls number was…