KEY POINTS:
* Nonfarm payrolls increased 257,000 last month, the Labor Department said on Friday. Data for November and December was revised to show a whopping 147,000 more jobs created than previously reported, bolstering views consumers will have enough muscle to carry the economy through rough seas.
* While the unemployment rate rose one-tenth of a percentage point to 5.7 percent, that was because the labour force increased, a sign of confidence in the jobs market.
* A broad measure of joblessness that includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment rose to 11.3 percent from 11.2 percent in December.
* In January, private payrolls increased 267,000. November and December private employment was revised higher. Private payroll gains in November were the largest since September 1997.
COMMENTS:
MARK GRANT, MANAGING DIRECTOR AT SOUTHWEST SECURITIES, FORT LAUDERDALE, FLORIDA:
“The headline numbers that are showing are somewhat better for employment. Since they keep fiddling with these numbers and telling us how many people have left the workforce, I don’t fully trust the figures. I honestly don’t think the Fed will do anything for the entire year. They will be forced by deflationary pressures, the problems in Europe and the slowdown in China. The headline figure looks good but the Fed’s hands are going to be tied.”
TODD SCHOENBERGER, MANAGING PARTNER OF LANDCOLT CAPITAL LP IN NEW YORK:
“The number is spectacular, and it really validates the trend that we saw in the final four months of last year. We’re continuing to see solid jobs growth, but it won’t move the needle for the Fed. The Fed will dissect this to see how many of the jobs created were high-wage, but since the unemployment rate popped a bit – though that’s probably due to seasonal hiring – this is enough to keep the Fed in check. It will probably put more pressure on Fed meetings during the summer, but for now all systems are go. This is a great reason to buy, especially since the stock market is the only place you can find yield right now.”
MARKET REACTION:
STOCKS: U.S. stock index futures rose modestly on the reportBONDS: U.S. bond prices fell FOREX: The dollar gained against other major currencies
(Americas Economics and Markets Desk; +1-646 223-6300)
