Following the unevenness in payroll figures for the last few months in the aftermath of hurricane season’s impact, US job creation outperformed the consensus forecast of economists, rising by 228,000 positions during November. Although below the downwardly revised 244,000 positions filled in October, the figure underscores the considerable drive in the manufacturing and construction hiring, with each sector adding 31,000 and 23,000 respectively while keeping the jobless rate firmly at 4.10%. Apart from indicating an economy that continues to gain momentum, the pace of monthly wage growth gains was positive, rising to 0.20% in November after a -0.10% contraction a month earlier. On an annualized basis, wages have risen by 2.50%, handedly outpacing price inflation. With the FOMC decision just days away, speculation is high that the board will adjust rates higher by 25 basis points. Since the weekly reopening, Dow futures have ticked modestly higher, rising to 24360.
US Equity Benchmarks Extend Payroll Momentum
Daily Analysis - 11/12/2017