Market Commentary

Jobs Report

Jobs Report

This week the May jobs report will be released on Friday. As a reminder, the April report was poor at 266,000 new jobs and the unemployment rate inched up to 6.1%. This was positive for stocks as it meant that the Federal Reserve would kick the can down the road in tightening the money supply.

The new report being released for May has experts expecting a reduction in the unemployment number to 5.9% with the commensurate jump in jobs. Will that mean stock prices will fall as the fear of the Federal Reserve tightening money supply surfaces?

If the jobs report is below expectations again the market will like the result, stock prices will rise. If it is too strong they will fall. We need a just-right number, but of course, no one is sure what that might be.