Jim’s Mailbox

Posted at 3:06 PM (CST) by & filed under Jim's Mailbox.

Jim,

Looks like they better start up the printing presses.

Dave

“Abysmal, But Put It In Context”: Wall Street Reacts To Today’s Jobs Report
March 8, 2019

Today’s payrolls report was so bad, that it blew right through the “just bad enough” category, and failed to even register as good news for stocks and algos, which would otherwise have sent markets surging as the number defecated on the grave of any future rate hikes and brought the moment of QE4 that much closer.

Needless to say Wall Street was confused, if not shocked, by today’s unexpectedly ugly report (even if, as we reported ahead of the number, the whisper was for a far worse print). However, that does not mean Wall Street was speechless, and as the following hot takes reveal, research analysts and other sellsiders had quite a bit to say about the number, with some saying it was truly ugly, others saying to ignore it, and a third group saying it was, what else, Goldilocks and they are not surprised at all.

Kristina Hooper, chief global market strategist at Invesco:

“The February jobs report was abysmal in terms of non-farm payroll but we have to put it in the context of incredibly strong January nonfarm payrolls. However, that is not going to be solace to investors, who have been put on alert by dramatic changes in monetary policy stances by first the Fed and then the Bank of Canada and most recently the European Central Bank. This jobs report will only amplify market worries.”

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Jim,

You nailed it – QE to infinity! MOPE has failed as you said it would!

Dave

Global Economy Slows, Pushing Europe’s Central Bank to Make a Surprise Move
March 7, 2019

FRANKFURT — Just a few months ago, the European Central Bank put the brakes on a vast economic stimulus program devised during the financial crisis. On Thursday, it unexpectedly reversed course and revived some of the measures, signaling the rising threat of a recession.

The quick turnabout, from confidence to concern, reflects the broader weakness in the global economy. A slowdown in China, exacerbated by rising trade tensions with the United States, has reverberated around the world, dragging down growth in Europe and elsewhere.

The United States is Europe’s largest trading partner, while China is an increasingly important market for its cars, pharmaceuticals and manufactured goods. The industrial powerhouse Germany barely escaped recession in the latest quarter, as the country’s economy was battered by the American tariffs on its steel and waning Chinese appetite for its machine tools and Volkswagens.

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