The long-awaited jobs report released today, posting a great increase of 235,000 jobs; estimates called for 187,000. Unemployment ticked down to 4.7%. Here are my takeaways…
$1 The Fed is sure to raise rates in March for the first time this year. Remains to be seen which companies are adequately prepared for a stronger dollar, as currency fluctuations have killed multi-national companies’ profits over the last year (makes overseas profits less valuable and hurts exports).
$2 One of the biggest sector gainers in this jobs report is construction, adding 58,000 jobs last month (110,000 for the last 3 months). This is big because the lion’s share of the additions are specifically for residential building, a positive sign for home builders, REITs, and mortgage banks in the future.
$3 The jobs report further builds momentum in the general economy, as demonstrated by early morning gains in all the broad market indexes. Year-over-year wage growth was at 2.8%, a very positive sign for workers. The jobs report also included new entrants into the workforce, and statistics point to there being more competition for high skill jobs, strong positives for employers.
Another choppy week has come to an end with some welcome positive news. Off to another big week dominated by the Fed meeting. Enjoy your weekends, fam!