The Lede: Economists said Friday’s June jobs report showed a labor market that was “roaring back,” with the U.S. creating 224,000 jobs, easily beating the 170,000 forecast.
More: “The strong June jobs numbers start the summer off on a strong footing for the American worker, and a big disappointment for the markets that are hoping for substantial interest rate cuts from the Fed. The 224,000 jobs added were broad based, with good gains in everything from manufacturing to construction to business services. The one weak category is retailing, as that industry moves from brick-and-mortar to online.” — Robert Frick, Navy Federal Credit Union.
Bonds are moving lower on the news following last week’s rally into new multi year high territory. The AGG(iShares Barclays Aggregate Bond Index) is already trading at a two week low after closing Wednesday at new 2019 highs. This could be the start of quite a reversal. Bonds are coming off extremely overbought levels.
Hat tip MarketWatch.com