The Number Was Actually Worse Than It Looked – Friday’s weak headline number and the accompanying downward revisions were enough to spark major moves in a variety of assets. But things were even weaker than the headline indicated.
My sharp-eyed friend, David Rosenberg, of Gluskin Sheff fame did a little further drilling down. Here’s what he noted:
Adding insult to injury and revealing an even softer underbelly to this report was the contraction in the workweek to 34.5 hours from 34.6 hours in August, which is effectively equivalent to an added 348,000 in job losses.
So take the headline number, tack on the downward revisions and the loss of labour input from the decline in the workweek, and the “real” payroll number was -265,000. You read that right.
That’s an absolutely stunning revelation, produced only with the kind of digging that David is famous for. We trust it was passed along to Janet Yellen.
A Skeptic On The Rally? Bill Gross of Janus doesn’t sound like he’s convinced we’ve turned around. Here’s a bit of a Bloomberg piece on his comments:
Bill Gross, who in January predicted that many asset classes would end the year lower, said U.S. equities have another 10 percent to fall and investors should sit out the current volatility in cash.
Please follow SGT Report on Twitter & help share the message.