Hot November Payrolls: Here's Why The Fed Pivot Is Still On Track

Dec. 02, 2022 12:54 PM ETDXY, SPY, TLT, USO3 Comments

Summary

  • The November payroll report showed another month of strong job gains.
  • Stocks sold off on the report in a "good news is bad" dynamic.
  • We still expect the Fed to slow the pace of rate hikes, with the more important outlook that inflation is trending lower.
  • We reiterate a bullish view on stocks into a year-end rally.
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The latest monthly payrolls report showed the U.S. economy added +263k jobs in November, well above expectations of +200k. By all accounts, the data print came in "hot" including the average hourly earnings climbing by 0.6% from October, compared to a 0.3% estimate. The initial

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Disclosure: I/we have a beneficial long position in the shares of SPY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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