Hamartia Antidote
ELITE MEMBER
- Joined
- Nov 17, 2013
- Messages
- 35,188
- Reaction score
- 30
- Country
- Location
https://www.marketwatch.com/amp/story/guid/5CA6B87C-184B-11EA-94F1-D8B326ED52C6
A hotter-than-expected jobs report for November has Wall Street waxing extremely bullish.
How much so?
Some market participants are starting to contemplate the notion that stellar employment figures could help embolden U.S. trade negotiators in a protracted tariff dispute between the U.S. and China—possibly resulting in a delay if not outright scuttling of a long-sought-after resolution.
Indeed, a key report of the week from the Labor Department report showed that the U.S. economy created 266,000 new jobs in November, according to the Labor Department, the biggest gain since January and the unemployment rate slipped to 3.5%, a 50-year low.
On top of all that, the government also revised the increase in new jobs in October to 156,000 from 128,000 and September’s gain was raised to 193,000 from 180,000, all underscoring health in one of the pillars of strength in the domestic economy in its 11th year of expansion.
A few strategists, traders, economists and TV personalities saw those numbers making a U.S.-China trade deal less likely to happen before a Dec. 15 deadline for $156 billion in new tariffs on consumer goods to take effect.
“This positive number could delay any US/China trade agreement, as signs of a stronger US economy will embolden US negotiators,” wrote Chris Gaffney, president of World Markets at TIAA Bank, in a research note after the nonfarm-payrolls report on Friday.
“As Trump stated earlier this week, he really isn’t in any rush to get a deal done by year end and the positive jobs data should rally the equity markets going into year end,” he said.
CNBC’s Jim Cramer on Friday contributed to that the no-deal idea, during the business network’s coverage of the employment data. “The president can walk away from the table with this number,” he said.
On Friday, Larry Kudlow, director of the White House National Economic Council, told CNBC in a phone interview that the case for walking away from a deal if it doesn’t pass muster with the Trump administration is high.
“The president has said many times if the deal is no good, if the assurances with respect to preventing future thefts, if the enforcement procedure is no good, he has said we will not go for it. We will walk away,” he told the network. However, Kudlow did describe a partial pact as “close.”
All the bold talk comes as the Dow Jones Industrial Average DJIA+1.22% the S&P 500 SPX+0.91% the Nasdaq Composite COMP+1%and the Russell 2000 indexes RUT+1.18% surged in Friday trade.
A hotter-than-expected jobs report for November has Wall Street waxing extremely bullish.
How much so?
Some market participants are starting to contemplate the notion that stellar employment figures could help embolden U.S. trade negotiators in a protracted tariff dispute between the U.S. and China—possibly resulting in a delay if not outright scuttling of a long-sought-after resolution.
Indeed, a key report of the week from the Labor Department report showed that the U.S. economy created 266,000 new jobs in November, according to the Labor Department, the biggest gain since January and the unemployment rate slipped to 3.5%, a 50-year low.
On top of all that, the government also revised the increase in new jobs in October to 156,000 from 128,000 and September’s gain was raised to 193,000 from 180,000, all underscoring health in one of the pillars of strength in the domestic economy in its 11th year of expansion.
A few strategists, traders, economists and TV personalities saw those numbers making a U.S.-China trade deal less likely to happen before a Dec. 15 deadline for $156 billion in new tariffs on consumer goods to take effect.
“This positive number could delay any US/China trade agreement, as signs of a stronger US economy will embolden US negotiators,” wrote Chris Gaffney, president of World Markets at TIAA Bank, in a research note after the nonfarm-payrolls report on Friday.
“As Trump stated earlier this week, he really isn’t in any rush to get a deal done by year end and the positive jobs data should rally the equity markets going into year end,” he said.
CNBC’s Jim Cramer on Friday contributed to that the no-deal idea, during the business network’s coverage of the employment data. “The president can walk away from the table with this number,” he said.
On Friday, Larry Kudlow, director of the White House National Economic Council, told CNBC in a phone interview that the case for walking away from a deal if it doesn’t pass muster with the Trump administration is high.
“The president has said many times if the deal is no good, if the assurances with respect to preventing future thefts, if the enforcement procedure is no good, he has said we will not go for it. We will walk away,” he told the network. However, Kudlow did describe a partial pact as “close.”
All the bold talk comes as the Dow Jones Industrial Average DJIA+1.22% the S&P 500 SPX+0.91% the Nasdaq Composite COMP+1%and the Russell 2000 indexes RUT+1.18% surged in Friday trade.
