Economy Adds 272,000 Jobs in May, Surging Past Expectations

The jobs report is good for the economy, not so good for the fight against inflation.

@#4 ... In another sign that inflation is finally receding, ...

Maybe, but I'm not convinced of that just yet, especially based upon just one data point.

Strong US Payrolls and Wage Growth Push Back Bets for Fed Cuts
finance.yahoo.com

.... US job growth surged in May and wages accelerated, prompting traders to push back the expected timing of Federal Reserve interest-rate cuts.

Nonfarm payrolls advanced 272,000 last month, a Bureau of Labor Statistics report showed Friday, beating all projections in a Bloomberg survey of economists. Average hourly earnings climbed 0.4% from April and 4.1% from a year ago, both picking up from the prior report.

However, the unemployment rate -- which is derived from a separate survey -- increased to 4% from 3.9%, rising to that level for the first time in over two years.

The latest figures highlight a labor market that continues to defy expectations and blunt the impact on the economy from high interest rates and prices. That strength risks keeping inflationary pressures stubborn, which will likely reinforce the Fed's cautious stance on monetary policy as officials debate just how restrictive rates are.

"It's a very Fed-unfriendly report -- an easing-unfriendly report," said Jay Bryson, Wells Fargo & Co. chief economist. "Taking this piece of data by itself means the Fed is likely to remain on hold for the next several months." ...

@#6 ... Good as now the Fed will keep the rates high which is good for investors : ) ...

Depends upon what you are invested in.

Risk-adverse investments, possibly.

Non-risk-adverse investments, not likely.

(I am not a financial advisor)

... U.S. household wealth rose to a record of more than $160 trillion in the first three months of 2024 thanks to the stock market's record run and gains in real estate, Federal Reserve data showed on Friday.

Household net worth rose 3.2%, or by $5.1 trillion, with the appreciation of equity holdings accounting for the lion's share of the gain at $3.8 trillion, the Fed said in its quarterly snapshot of the nation's private and public sector finances.
The benchmark Standard & Poor's 500 Index (.SPX), opens new tab gained 10.6% in the first quarter on a total return basis, including reinvested dividends. The index hit another record high earlier this week.

Real estate value growth added another $0.9 trillion, and upticks in other assets including cash and money market funds accounted for the rest of the increase. Household net worth has nearly doubled in the past decade.

Total nonfinancial debt rose by 4.5%, led by a 6.2% increase in the federal government's obligations, although that snapped a run of three straight quarters of federal debt growth exceeding 10%. Household debt grew 2.9% and business nonfinancial debt climbed by 4%. ...

@#7

Hmmmm...

Household wealth increased because of the stock market.

Yet consumer debt increases.

The wealthy benefiting via the stock market, while everyone else is piling more debt on their credit cards to get by?

@#9 ... That's paper gains, unless you're smart and take some of those gains off the table ...

But gains for whom?

I suspect the majority of those experiencing those gains have advisors who tell them the same comments you are offering.

The rich now own a record share of stocks (January 2024)
www.axios.com

... About 93% of U.S. households' stock market wealth is held by the top 10%. ...

Good chart in the article.