Both surveys from the Bureau of Lies and Scams showed a huge increase in jobs during October. That’s funny, because Challenger, Grey and Christmas keeps showing lay-off announcements up 40% over last year. Of course, the good old Birth/Death adjustment added 165,000 phantom jobs into the calculation, so I’m sure its accurate. Everyone knows there are new businesses opening every day, hiring hundreds of thousands of high functioning millennials. Supposedly the single biggest driver of new jobs was among those with a high school education or less. I’m sure those are high paying jobs.
The Federal Reserve had already decided they needed to raise rates by .25% before year end to bolster their non-existent credibility. What better than an employment report that was 50% higher than the highest Wall Street bank estimate. What a coincidence. I wonder how the soaring USD will impact the profits of our international conglomerates? Oops.
So the market sold off in August and September because the economy was clearly weakening. Then the market rallied in October because a weak economy meant the Fed would never raise rates again. Now this employment report supposedly clinches a Fed rate hike in December. Now for all the housing bulls, the 10 Year Treasury yield has spiked from 1.9% at the beginning of October to 2.3% as of this morning. And that’s before the Fed even raises rates. Can this weakening economy, with global trade going into the toilet, withstand interest rates going up by even 1%? Not a chance.
Let the spin begin. The CNBC bimbos and boobs have been using the storyline of bad economic news is good for the stock market. Now they have to pivot 180 degrees and propagandize that good economic news is actually good for the stock market. This entire bubble economy has been solely dependent upon 0% interest rates for the last six years. We’ll see how it does now.
October Jobs Soar To 271K, Smash Expectations, Unemployment Rate 5.0%, Hourly Earnings Spike
Submitted by Tyler Durden on 11/06/2015 08:33 -0500
If there was any doubt if the Fed would hike rates in December, it is gone now: October payrolls soared by 271K, smashing not only consensus of 184K, but the highest expected print. This was the highest monthly print since December 2014 when the gain was 329K and pushed the YTD average monthly gain from 199K to 206K.
The unemployment rate dropped from 5.1% to 5.0%, the lowest since April 2008, and most importantly, the average hourly earnings rose from 0.2% to 0.4%, the highest hourly earnings jump since 2009!
