Job Number Disappoint
Employment number was way below the consensus of 103,000 job creation. It seems Katrina had more impact than anticipated. Also, businesses are hesitant to hire in fear that the higher energy prices may impact business.
Average hourly wage shot up 8 cents, a 0.5% increase. The largest increase in two years. This is the number the Fed is closely watching because of the inflationary implication.
Stocks are weak today due to the labor numbers. But slight weakness is good sign for the market. Let’s see if the market can hold up under bad news.
It's not when you buy. It's when you sell!
