- Non-farm payrolls came in 5% better than expected, at 263K, as opposed to the expected 250K.
- Unemployment rate came in better than expected, at 3.5%, as opposed to the expected 3.7%.
- Average Hourly Earnings MoM growth came in as expected, at 0.3%. However, consumer spending grew by 0.6%, which means real wages are in decline.
- Average Hourly Earnings grew only 5% year-over-year, whereas all inflation measures are above 5%.
This jobs report is likely to be seen as positive by the FED, which is looking to do another “jumbo” (0.75%) rate hike at the beginning of November.
Premarket traders responded negatively, as expected, and all major US indices are in decline.
Gold lost the $1,700 support.
