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Jobs Up, Stocks Down

By Matthew Kerkhoff


A stronger than expected monthly jobs report is causing markets to sell off. At face value this may seem counterintuitive, but there are many moving pieces to this puzzle. Here is what job growth looks like based on the Bureau of Labor Statistics. Last month 290,000 jobs were created, extending a long stretch of hiring. Every sector of the economy added jobs with the exception of mining.



Naturally, one would assume that continued robust jobs growth signals a green light to own stocks. After all, if corporations are hiring it means demand is strong, and more people working means more spending, higher corporate earnings, higher GDP, and the need for more workers. We've seen this virtuous feedback circle take corporate profits and stock prices to all time highs.


The problem is that with the US outshining the rest of the world, the dollar is strengthening, and with the economy building momentum, ... Log in or subscribe to continue reading.

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