Missed By A Mile: U.S. Adds 235,000 Jobs In August, Well Below Consensus. What’s Next From The Fed?

Missed By A Mile: U.S. Adds 235,000 Jobs In August, Well Below Consensus. What’s Next From The Fed?

That hissing noise you hear is the air being let out of the market's tires after an epically disappointing August jobs report. The Delta variant seems to be sinking its teeth into the economy, taking a massive bite into the jobs picture. Job gains of 235, 000 in August reported today by the U. S. government were more than 500, 000 below the average analyst estimate for 750, 000, and raises new questions about the pace of economic growth as the country continues to struggle with Covid-19. Lack of any gains for the Leisure and Hospitality sector played a big role in the disappointing data. On the plus side, the Labor Department did raise its estimates for jobs growth in June and July, to 962, 000 and 1. 1 million, respectively. You can't necessarily discount the possibility that we could see an upward revision for August next month but, given the impact Leisure & Hospitality had on today's report (see more below), subsequent reports could hinge on the Delta variant. Major indices held pretty steady after the report—arguably quite a feat given the recent string of record highs. Perhaps it's one of those times when bad news doesn't have much