Out Fox The $treet

Prior to the market open today, the BLS released April jobs numbers that apparently largely disappointed the stock market with the SP500 down 1.5% as I'm writing this post.  Below is a summary provided by First Trust. Non-farm payrolls increased 115,000 in April and were up 168,000 including revisions to February/March. The consensus expected a gain of 160,000. Private sector payrolls increased 130,000 in April. Revisions to February/March added 66,000, bringing the net gain to 196,000. April gains were led by retail (+29,000), professional/technical services (+28.000), employment services, including temps (+28,000), bars/restaurants (+27,000). The weakest sector was transit & ground transportation (-17,000). The unemployment rate ticked down to 8.1% from 8.2% in March Average weekly earnings – cash earnings, excluding benefits – were unchanged in April but are up 1.8% versus a year ago. As noted by First Trust in that article, the interpretation of whether the number...

A chart speaks a thousand words so the below chart of the monthly nonfarm payrolls over the last four years speak to the recent strength in the report. We'll let the experts spin all the minute details of the report, but this charts shows how the US economy is on the verge of a major breakout. Employees flush with cash just can't hold back any longer. The biggest concern is that this provides Obama with the ammunition that he needs fore re-election. That could subdue any Spring rally. via wsj.com

With all the supposedly disappointing news (hours worked and wages were up but thats a different story for later) about the Government's Non-Farm Payrolls report on Friday, it's worthwhile to take a look back at the Monster Employment Index released the day prior. This report showed conflicting data to the NFP report. Monster's Index showed a stronger job market in May and no signs of declines. These numbers aren't manipulated like that of the government's data so they should present a much more reliable source as well. After all, the government number could be raised or lowered by 50K easily when its revised next month. Below is just the highlights that they summed up nicely for us. Read the whole report and you come out with a very positive view of the jobs market. May 2010 Index Highlights: • Index rises one point in May as employers continue to step-up hiring activity. Year-over-year growth rate climbs for the fourth consecutive month, and is now 14 percent (16 ...