Jobs Report Highlights

The Bureau of Labor Statistics released its Jobs Report for January this morning and while job growth was disappointing, the Unemployment Rate came in four-tenths lower at 6.3%. Non-Farm Payrolls rose by 49k against an expectation of 105k as the prior month’s loss of 140k jobs was revised to a loss of 227k. Both the Establishment Survey and Household Survey results reflect annual seasonal adjustments including changes to population estimates that make comparisons to prior periods a little complicated. Average Hourly Earnings notched a monthly rise of 0.2% while year-over-year, that measure got a boost to 5.4% from 5.1%. The Labor Force Participation Rate fell one-tenth to 61.4%. According to the Establishment Survey, Manufacturing lost 10k jobs with Leisure and Hospitality losing 61k. Professional and Business Services picked up 97k new positions.

Treasury prices have actually inched up since the report’s release and the Ten-Year’s yield is around 1.15% with the Long Bond around 1.95%. The Two-Year is still around 11 basis points as the yield curve keeps its steep slope. Crude oil is up about a half-dollar to $56.67 while gold’s $10 rally has pushed that price back to $1,804 after yesterday’s drubbing. Equity indices are pretty green.