The lede:  BLS reported that in June the US added 222K jobs (making a mockery of the ADP print again), beating expectations of 179K, with the May payrolls number revised from 138K to 152K and April revised from 174K to 207K, for a combined revision of the past two months of +47,000 more than previously reported, validating the Fed’s hawkish bias and suggesting that more rate hikes remain on the horizon, even though weaker than expected wage growth could prove to be a potential hurdle to further tightening.

payrolls july_0

But, wage growth disappointed.  Key bit:  However, the clear negative in today’s report is that despite the better than expected job growth, wage growth once again disappointed, with average hourly earnings rising only 0.2% (technically 0.153%), missing expectations of a 0.3% increase, while the May earnings number was revised lower from 0.2% to 0.1%. On a Y/Y basis, avg. hourly earnings rose 2.5%, also missing expectations of a 2.6% increase.

Bonds are selling off again on the news.  The TLT is trading at new July lows but appears to be stabilizing.  Stocks are broadly higher but only moderately so.