U.S. Payrolls Rise 201,000 While Wage Gains Accelerate to 2.9% (Gold Declines, 10Y Treasury Yield Climbs)

I am sure that MSNBC’s Rachel Maddow is having someone pour over the August jobs data to find something awful. But it looks pretty strong to me!

(Bloomberg) — U.S. job gains rebounded by more than forecast in August and wages unexpectedly registered their biggest advance of the expansion, keeping the Federal Reserve on track to lift interest rates this month and possibly another time this year.

Nonfarm payrolls rose 201,000 after a downwardly revised 147,000 advance, a Labor Department report showed Friday.

jobsaug18

The median estimate of analysts surveyed by Bloomberg called for a gain of 190,000 jobs. Average hourly earnings increased 2.9 percent from a year earlier …

aheyoy

while the jobless rate was unchanged at 3.9 percent, still near the lowest since the 1960s.

u3aug18
Robust hiring and lower taxes have boosted consumer spending and kept the job market near full employment, giving the Fed the go- ahead on raising rates this month. While investors have seen fewer hikes than policy makers are expecting through the end of 2019 — amid an escalating trade war, turmoil in emerging markets and the risk of a yield-curve inversion — the latest wage figures could narrow the gap in the outlook between the Fed and markets.

On the good news, gold dropped slightly.

goldaugrep.png

And the 10-year Treasury Note yield rose almost 5 basis points.

10ytjobsrep

The chink in the jobs armor? Look at the downward revisions in the first graphic.

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