Suncor Energy Inc. T.SU

Fed Hikes to continue with good jobs report.

[Bigbear7405]

https://www.cnbc.com/2022/10/06/stock-market-futures-open-to-close-news.html

It was a very good jobs report with the unemployment rate going down to 3.5% from 3.7%.  So  why did the dow drop 600 plus points?   Bad new is bad news and good news is bad news.  Yikes. 

While the data was about as expected, the drop in the unemployment rate is seemingly what the markets are obsessed with because of what it means for the Fed,” said Bleakley Financial chief investment officer Peter Boockvar. “When combined with the low level of initial jobless claims, the pace of firing’s remains muted and this of course gets the Fed all fired up about continuing with its aggressive rate hikes.”

[Experienced]

This article highlights what I have been talking about. 1......going into the initial Fed rate hikes there were twice as many job openings as unemployed people and so what has happened is that the number d job openings have dropped but employment has stayed high- but this will change in the coming months  2....the economy is still absorbing trillions in Government stimulus which is working

[mrbb]

would jerome powell dare to raise rates to level of paul volcker's day? it is obvious to any observers that so far rate hikes have done squat to the inflation rate.  What's another and another dinky 0.5%-0.75% increment rate hike gonna do when opec+ just did a +20% rise to the price of oil (76's to 93's $/bbl oil WTI) without much effort.  In fact, rate hike is hurting

[marketsense]

Excellent analysis Experience.  Your common sense explanation is simple but also factual.   That said,  I hope that the Fed isn't going to be the only tool used in fighting inflation.  It is too blunt and carries attendant risks that are prone to over shooting.  That time lag before the full effects are quantified is what worries me. I like the idea of coupling the

[Experienced]

Thanks for your kind words marketsense. You are very correct that the tools the Fed and all central banks for that matter use are blunt tools and often take a long time before their effects are truly felt.  Sadly, this requires patience which from my vantage point is sorely lacking. Your hope that the there is more than can be done than just the Fed tools is a good one.   Actually