Hey is how dumb and assine the 'market' is. From a US Today article on 175k jobs.
I was confused why a number (service jobs up, but manufacturng down) so close to expected caused any move in the market (stocks up and gold down).
But this view, BEFORE the 175k number, does explain the stupidity of what is going on.
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Wall Street economists expect payrolls to increase by 165,000 in May, unchanged from April. They also expect the unemployment rate, at 7.5%, to remain unchanged.
The angst on Wall Street revolves around how many jobs were actually created and what the market's reaction will be, says Lance Roberts, chief strategist at StreetTalk Advisors. "What's important is the interpretation of the numbers.'"
What Wall Street doesn't want to see is either a superstrong number, say 200,000 or more, or a depressed number below 100,000. They much prefer a so-called Goldilocks-type reading.
"What the market wants is a not-too-hot, not-too-cold number," says Alec Young, global equity strategist at S&P Capital IQ.
A strong reading above 200,000, for example, might be viewed negatively by stock investors. The reason: It would increase fears that the Fed would start dialing back its easy-money policies sooner rather than later, depriving the market of a bullish driver, Young says.
Similarly, a weak reading, say below 100,000, would likely unnerve investors, as it would suggest that even though the Fed would likely stay loose with its policies longer, the economy might be at risk of "falling off a cliff," Young says
