On July 3, 2014, another positive economic report continued to shed light towards a positive USA recovery.
288k Americans Hires V Expectations of 211k
The non-farm payroll for June beat expectations and prior estimates were revised upward. With a headline hire number of 280k for the month versus and expectation of 211k, this provides further evidence of a growing US economy … This is Fantastic and much needed news.
From our friends at Econoday
|Released On 7/3/2014 8:30:00 AM For Jun, 2014|
We have highlighted the Average Hourly Earnings Change as this is a key indicator for Janet Yellen and the FOMC is watching for their proof of economic improvement. This rate is below their comfort zone at the moment. Currently there is very little wage inflation pressure which conflicts somewhat with a higher total hire number.
Capital Market Reaction
Bonds smartly sold off somewhat on the news which leads to a higher interest rates. Equity Markets, still way ahead of themselves trudged higher albeit on VERY light volume.
Equity markets continue to stay frothy by marching ahead with the good news …. from already lofty levels.
Have a Great Day!
John A. Kvale CFA, CFPwww.jkfinancialinc.com www.street-cents.com 8222 Douglas Ave # 590 Dallas, TX 75225