Friends

We got the ole good news is bad news today. Today’s non-farm payroll number was much higher than expected with 162,000 jobs added in August vs. 53,000 that analysts had expected. The unemployment rate held steady at a very impressive 4.1%. Additionally, the numbers for June and July were revised higher. Of course, the good news is that the labor market is strong. The bad news is that the markets think that the Fed will be more likely to raise interest rates in coming months because of it.

Not surprisingly, bond yields inched higher and stocks moved lower. By the close the Dow Jones Industrial Average was down 271 points to finish the day at 53,414. The S&P 500 was down 29 points to close at 7,718. The Nasdaq Composite Index was down 77 points to close at 26,506. Gold was down $56 to trade at $4,483, while oil was up $.03 to trade at $91.33 per barrel WTI.

Given the size of the jobs number beat, I am a little surprised that both bonds and stocks didn’t sell off more. We’ll see what market participants have to say on Tuesday after a long holiday weekend to chew on it all.

Have a great Labor Day weekend everyone.

Jim