Stocks and bonds enjoy sluggish jobs numbers


"Abysmal" private sector job growth, says Diane Swonk, noting 22K of the job gains came from government additions.

The headline jobs number missed estimates by 32K, but July and August revisions added 9K (July was revised lower by 15K, August higher by 24K).

Average workweek is unchanged at 34.5 hours. Average hourly earnings up $0.03 to $24.09, up 2.1% Y/Y.

Labor force participation rate of 63.2% and employment-to-population ratio of 58.6% are both unchanged from August. Labor force participation - of key importance to incoming Fed chief Yellen - is off 0.4% YTD. The broader U-6 unemployment rate slips to 13.6% from 13.7%. It was 14.2% a year ago.

Stocks and bonds both get jiggy following the numbers, which surely push thoughts of a Fed taper even further into the future. S&P 500 +0.3%, and the 10-year Treasury yield slips 8 basis points to 2.53%. TLT +1%, TBT -2%.

S&P ETFs: IVV, SPY, VOO, RWL, SFLA, SSO, UPRO, SDS, SPXU, SH, EPS, RSP, BXUB, BXUC, BXDB.

Treasury ETFs: TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX.

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Comments (7)
  • Rope a Dope
    , contributor
    Comments (704) | Send Message
     
    That number is beyond sad. And ... more people giving up hope of ever finding a job. Americans will soon be immigrating to 3rd world countries in search of a better life.
    22 Oct 2013, 08:47 AM Reply Like
  • notta lackey
    , contributor
    Comments (131) | Send Message
     
    Immigration from Mexico is already near net zero. Good thing we didn't build the fence, dude. We couldn't get out.
    22 Oct 2013, 09:14 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (10736) | Send Message
     
    1. No taper until 2018...guaranteed.

     

    2. Shorting (PST) has been a good, long-term trade.

     

    3. Unless we get @ least a doubling of QE we will continue to run in place economically.
    22 Oct 2013, 09:36 AM Reply Like
  • Jquinlan2
    , contributor
    Comments (13) | Send Message
     
    @DeepValueLover - how do you figure? there is a point when they will throw in the towel because it's obviously NOT working...
    23 Oct 2013, 02:27 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (10736) | Send Message
     
    "Throwing in the towel" = interest rates zooming higher = recession = politicians being voted out of office.

     

    So there is no way in the world the Fed can taper without causing serious damage to important political careers.
    23 Oct 2013, 02:38 PM Reply Like
  • Jquinlan2
    , contributor
    Comments (13) | Send Message
     
    I think that can happen soon enough...plus, the fed is SUPPOSED to be independant of politics
    23 Oct 2013, 03:20 PM Reply Like
  • notta lackey
    , contributor
    Comments (131) | Send Message
     
    The Federal Reserve Bank is not Federal, has no reserves and is not a Bank. It is owned by the largest banks and is certainly "independent of politics", which is its greatest problem. The original QEs were to create huge spreads so Bernanke could bail out his stockholders. However, now, they are riding a tiger by the tail. They have been producing money at about 7-7.5%. Once the people realize that, velocity of money will kick in and the inflation rate will go there. Banks want inflation so their bad mortgages will go back into the money. We need to get rid of the Fed. It is either them or us.
    24 Oct 2013, 05:59 PM Reply Like
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