The Bureau of Labor Statistics (BLS) released their estimate of new job creations for the month of October, reporting a positive 128,000 jobs. Although not a blockbuster report by any means, it was above the 90,000 that the market was anticipating. In addition, there were positive revisions to the previous two months of 95,000. That’s a huge gain overall and adds to the strength of the report. Further, a deeper look a the report shows that the pool of available labor is at its lowest level since December 2000. That’s a strong sign for the US economy, which is highly influenced by the strength of the labor force.
Another key part of the report is the Unemployment Rate, which ticked up a step from 3.5% up to 3.6%. We will likely see weekly unemployment claims raise before we can expect to see the unemployment rate move much higher. Once employers begin to lay off more employees, the next step would be to see the unemployment rate move higher.
The US stock market is climbing higher, once again setting new all time high record levels. In spite of this, the bond market is holding strong. As long as bond prices hold current levels, you can float. However, only float if you are ready to lock should things weaken in the bond market.