The unemployment rate rose to 3.7%, but this is a fifty year low (Note - I know that you know that this statistic is unreal, as it only measures the number of people unemployed in the last four weeks in the USA...just play along, please.)
Finally, there was 3.1% wage growth year over year, which suggests some slight inflation on the horizon - a hallmark of a growing economy.
In short, ALL GOOD! Isn't it?
The S&P 500 was down...the DOW was down....the NASDAQ was down.
Why were these major US indices down when the jobs report indicates a growing economy, and presumably bright years ahead for things like corporate profits?
The good jobs report was a BAD thing for what really matters, which is interest rate policy. The 225,000 new jobs number probably means that the US Fed will not lower interest rates as some had been predicting for the last few months.
And this is BAD because it means that US companies will not be able to borrow money at lower rates to continue to fund the stock buy backs that have been propping up the stock markets in the USA for at least the last 16 months.
You see...
Low rates = more corporate borrowing = more buy backs = more artificially inflated stock prices = more profits for corporate executives when they exercise their options. This is how the country now works..."Government of the rich, by the rich, for the rich..."
Why isn't fair to say that this latest jobs report is practically stealing money right out of the hands of the privileged class in the USA! More Americans working is BAD for the only business that counts! For shame!
The game is rigged, and everyone must continue to play their part until the while rotten edifice comes tumbling down. Expect to hear about a phone call from President Trump to Fed Chairman Powell very soon about the need to get rates down again, asap.
The Swindle Continues...
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