Earlier we gave a big picture explanation how the US can add 292,000 while average hourly wages actually decline. Below is a more nuanced answer, looking at the breakdown of jobs by industry in December. It will probably come as no surprise to anyone that for another consecutive month, the well-paying jobs: mining and logging, wholesale trade, manufacturing, and information barely posted a net increase.
The good news - wholesale inventories are being worked off (falling 0.3% MoM in November - biggest drop since May 2013). The bad news - inventories are being worked off (crushing Q4 GDP hopes and Fed forecasts). The ugly news - Wholesale sales collapsed 1.0% MoM - the biggest drop in a year (leaving the spread between sales and inventories at a record high).
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When The U.S. Dollar No Longer Exists
Written By Jeff Nielson (CLICK FOR ORIGINAL)
Stocks are rallying into the open. However, the technical damage of the last week has been severe.
The S&P 500 crashed through its trendline (blue line). It also crashed through critical support established by the bounces in September and October (green line).
We might get a bounce here to retest that green line, but unless a major Central Bank launches a new monetary program stocks are heading DOWN.
As we noted in the jobs preview, only a super strong number had any chance of prompting a market reaction, and sure enough, the just announced December print of +292,000 smashed expectations of +200K, surging from last month's upward revised 252K, while October was revised to a massive 307,000, a net addition of 50K over the last two months.
So time for another rate hike, right?