Friday's jobs report had nothing for everybody!
The number of jobs added to the economy was fewer than expected. The unemployment rates dropped for the wrong reasons … more people exiting the workforce. The wage data were softer than expected. And, the two prior to months' job gains were revised downward.
The bond market has taken note and 10-year Treasury yields, and the value of the U.S. dollar, are both sliding. That is not a reassuring development.
Tune into Power Lunch at 2 pm. Ron Insana will be a guest.
The data are not a total disaster. The narrowest, and broadest, measures of unemployment are at their lowest levels in years. However, the labor force participation rate also declined, offsetting that welcome news.
Coupled with weak housing and auto sales, of late, the most important question is whether this is the start of a noticeable slowdown in the economy, or a set of statistical quirks that occur in the merry month of May.
I am leaning toward the former for a couple of reasons.
With the Federal Reserve poised to raise interest rates again in June, today's data notwithstanding, and scant fiscal stimulus loaded in the Washington pipeline, this could be the beginning of a worrying trend.