Friday, September 6, 2024

The Morning Call---Is the labor market normalizing?

 

The Morning Call

 

9/6/24

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/stocks-fade-ahead-payrolls-bonds-oil-convinced-hard-landing-inevitable

 

            Note: the S&P closed right on its 50 DMA. Follow through.

 

            Ten more charts to keep you from getting too bearish.

            https://www.zerohedge.com/the-market-ear/10-charts-keep-us-getting-too-bearish

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

                       

                        August nonfarm payrolls were up 142,000 versus estimates of 160,000; the

August unemployment rate was 4.2%, in line. (this link mistakenly headlines June payrolls not the correct August payrolls).

                        https://www.zerohedge.com/markets/june-payrolls-miss-unemployment-rate-declines-pulling-back-sahm-rule-recession-trigger

 

Weekly initial jobless claims totaled 227,000 versus expectations of 230,000.

 

Q2 nonfarm productivity increased 2.5% versus forecasts of   +2.4%; unit labor costs were up 0.4% versus +0.8%.

 

The August ADP private payrolls report showed job increases of 99,000 versus predictions of 145,000.

 

The August services PMI came in at 55.7 versus consensus of 55.2; the August composite PMI was 54.6 versus 54.1.

 

The August nonmanufacturing index was 51.5 versus projections of 51.1.

 

                        International

 

July Japanese household spending fell 1.7% versus estimates of -0.2%; the July preliminary leading economic indicators reading was 109.5 versus 109.4.

 

July German factory orders rose 2.9% versus expectations of -1.5%; the July trade balance was +E16.8 billion versus +E21.0 billion; July industrial production was down 2.4% versus +0.3%.

 

Q2 EU (3rd est.) GDP growth was +0.6%, in line; Q2 final employment change was +0.2%, also in line; July retail sales were up 0.1%, also in line.

 

The August EU construction PMI was 41.4 versus expectations of 42.0; the August German construction PMI was 38.9 versus 39.8; the August UK construction PMI was 53.6 versus 54.9.

 

August UK YoY auto sales fell 1.3% versus forecasts of +2.0%.

 

                        Other

 

                        9/5 summary

                        https://www.capitalspectator.com/macro-briefing-5-september-2024/#more-22762

 

                        Problems at Bureau of Labor Statistics.

                        https://www.nytimes.com/2024/09/05/business/economy/bls-economic-data-jobs-report-cpi.html

 

 

            Fiscal Policy

 

              The likely consequences of Trump’s proposed economic platform.

              https://www.aei.org/economics/the-economic-consequences-of-a-second-trump-presidency/

 

              But he does have at least one good economic idea.

              https://www.zerohedge.com/political/trump-announce-elon-musks-proposal-government-efficiency-commission

 

            Recession

 

              Is the labor market normalizing?

              https://wolfstreet.com/2024/09/04/is-the-labor-market-normalizing-what-even-is-normal/

 

            Civil Strife

 

              Venezuelan and Cuban gangs infiltrating Permian oil fields.

              https://www.zerohedge.com/commodities/its-spreading-americas-top-oil-field-terrorized-armed-venezuela-gangs

 

              Should ‘unfettered’ free speech be banned?

              https://www.zerohedge.com/political/has-stop-harris-denounces-unfettered-free-speech-2019-cnn-interview

 

            Geopolitics

 

              When monetary and fiscal policy are joined at the hip.

              https://www.zerohedge.com/markets/when-fiscal-and-monetary-policy-join-hip-markets-can-be-told-what-do-or-do-nothing

 

    Bottom line

 

            August dividends by the numbers.

            https://politicalcalculations.blogspot.com/2024/09/dividends-by-numbers-in-august-2024.html

 

            Goldman issues dollar crash warning.

https://www.forbes.com/sites/digital-assets/2024/09/05/goldman-sachs-issues-huge-fed-crash-warning-as-a-legendary-trader-suddenly-flips-his-bitcoin-price-prediction/

 

Why you shouldn’t freak out about the yield curve uninverting (but you shouldn’t ignore it either).

            https://sherwood.news/markets/yield-curve-recession-indicator-uninverting-meaning/

 

            Focus more on the data and less on the shape of the yield curve.

            https://www.zerohedge.com/markets/what-happens-after-yield-curve-uninverts

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

           

 

 

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