US Economy and Credit Markets Ended Jan. 10, 2020
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The U.S. economy added 145,000 jobs in December, extending the streak of monthly gains to 111. December's gain slightly missed the expected 160,000, but nevertheless capped a strong decade that saw the U.S. economy add almost 23 million jobs and end with the unemployment rate at a 50-year low of 3.5%. Last year's gain also marked a record 10th straight year of job gains. Average hourly earnings were up 2.9% over the prior year, which was lower than the growth in recent months but continued an upward trend in wage growth for the better part of the last decade. However, the pace of wage growth wasn't enough to stoke fears of inflation and U.S. government bond yields were little changed following the report from the Labor Department. Moreover, the report did little to change expectations that the Fed will hold rates steady at the beginning of 2020. Meanwhile, oil and U.S. government bond prices pulled back from recent advances following comments by President Trump on Wednesday that signaled a de-escalation in the conflict between the U.S. and Iran. Major economic reports (related consensus forecasts, prior data) for the upcoming week include Tuesday: December CPI MoM (0.3%, 0.3%); Wednesday: January 10 MBA Mortgage Applications (N/A, 13.5%), December PPI Final Demand MoM (0.2%, 0.0%), January Empire Manufacturing (3.6, 3.5); Thursday: January 11 Initial Jobless Claims (217k, 214k), December Retail Sales Advance MoM (0.3%, 0.2%); Friday: January Preliminary U. of Mich. Sentiment (99.3, 99.3), December Housing Starts (1,380k, 1,365k), December Industrial Production MoM (-0.1%, 1.1%).
Posted on Monday, January 13, 2020 @ 9:05 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.