Nobody, no matter how confident they appeared in front of CNBC cameras, was confident about the market’s reaction to Friday’s U.S. Non-Farm Payroll result. We now have at least a partial answer: investors care more about Fed stimulus than the U.S. economy.
The U.S. Bureau of Labor Statistics estimated that the economy created 169,000 new jobs in August, 11,000 below expectations. Moreover, the July report showing 162,000 new jobs was revised sharply lower to 104,000. It was a terrible report, and yet S&P 500 futures immediately ramped up 5 points to 1,660.