Summary and Reaction to this Morning’s NFP Report
As expected, September non-farm payrolls rebounded, slightly beating expectations with a gain of 110,000 jobs for the month. The unemployment rate jumped by 0.1% to 4.7% and average hourly earnings rose by $0.07, or 0.4%, to $17.57 per hour. In addition, the August payrolls figure was revised upward to 89,000 jobs created, well above the 4,000 lost originally reported. Manufacturing jobs declined yet again – this time by 18,000 jobs – while the construction industry also lost 14,000 jobs in September. The service sector showed the biggest jump in hiring, with 143,000 jobs added.
Market reactions after the report include a sharp drop in Bond prices, with December 30-year Bonds down 0-25, at 111-10. Stock indexes reacted favorably, with the December e-mini S&P 500 up 10.75 to stand at 1563.00. The U.S. Dollar was sharply higher against both the Euro and Yen, and Gold prices fell sharply.
Mike Zarembski, Senior Commodity Analyst
