The “NFP” is hailed on Wall Street by 2 new records: the Nasdaq takes + 0.5% to 14,400 and the “S&P” + 0.3% to 4,333.
According to figures released at 2:30 p.m. by the Department of Labor, the US economy generated +850,000 non-farm jobs in June, well above the consensus (700 to 750,000 for Goldman Sachs) and the total number of creations out of the 2 previous months is revised up +15,000.
Paradoxically, the unemployment rate rose by 0.1 point to 5.9%, while the consensus expected a drop (quite logically) to 5.7%: this means that with the suspension of exceptional aid, more Americans re-register to collect compensation.
The labor force participation rate remained roughly unchanged at 61.6%, a level 1.7 points below its pre-health crisis level of February 2020.
But the most significant figure, and yet literally ignored by the market, is the + 3.6% increase in labor costs on an annual basis… and yet the yield on T-Bonds remains frozen at 1.44%.
No wonder Wall Street is breaking records… no more data seems to be able to encourage the Fed to “move”.
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