Stocks are higher Friday despite the U.S. losing jobs in July, as slowing average hourly wage growth and a drop in the unemployment rate to 4.1% offered potentially encouraging signs for the Fed’s inflation fight.Kevin Hincks breaks down the jobs report, the latest headlines from Iran, Airbnb (ABNB) surging after earnings, and The Trade Desk (TTD) plunging following disappointing quarterly results and a weak outlook.

Markets Higher as Jobs Number Disappoints, Wage Growth Falls

Schwab Network

Kevin Hanks, live at the CBOE, is joining me for our Pre-Bell Playbook. And we look at this jobs report. Not only did we see a miss for this month, which came in negative, but also we saw the revision for the prior two months lower. Unemployment rate lower than expected. There's not enough workers. There's a shortage of workers. The young folks are feeling discouraged based on some of the numbers. Good morning to you, Kevin.

Good morning, Nicole. Yep, you know, this is a tricky number to sift through, but the market is giving you the final answer. And what the market was worried about is inflation. And that number came in much better than expected. Here's the numbers. Non-farm payrolls down 23,000. You mentioned the revisions. Last month revised from 57,000 to 20,000. Unemployment rate, 4.1%. Now, we've been alluding to this all week,

that these jobless claims data numbers coming in so strong might actually lead to a drop in unemployment, and we got it to 4.1%. Private payrolls came in 30,000. That was much less than expected. And last month's were revised from 49 to 30. Manufacturing came in 5,000. But here's what the market really liked, Nicole, and that is average hourly wages came in up a tenth.

That's a two-tenth lower than expected. They were looking for something around up 0.3. Average hourly earnings year over year drops to 3.2% from 3.5. That is why the overall market is rallying, Nicole. Number one, unemployment dropping to 4.1% is a good thing for the overall market and inflation coming down.

Markets Higher as Jobs Number Disappoints, Wage Growth Falls

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Markets Higher as Jobs Number Disappoints, Wage Growth Falls

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.