A lot of people were left scratching their heads after Friday's blowout jobs report. Somehow a 6 month downtrend was reversed in one month. The average economist estimate was under by over 100,000 jobs...
After the fact of course we find out that the report was massaged ten ways to Sunday to factor in part-time summer employment. Meanwhile David Rosenberg estimates that jobs actually declined by 119,000 in June.
If we want more veracity we can look on the Fed's own web site:
ZH: July 11, 2016
The Fed's Labor Market Conditions Index Continues to Deteriorate
https://fred.stlouisfed.org/graph/?graph_id=318421&updated=6723
On a quarterly basis, payrolls and the LMC index track very closely...
Corporate profits (blue) ultimately determine hiring, lack thereof...
When one company outsources they increase profits. When they all do it at the same time, they go out of business...
Two things that go down together, bond yields and corporate profits:
Bonus charts:
Activision
Lockheed Martin
