I’m reading The Wall Street Journal’s live blog of the January jobs report. It’s almost funny, except that there really isn’t anything funny about this economy. At 8:26 AM a guy named Michael Casey wrote “I’m going to call 200K. I’m feeling optimistic.” Just 9 few minutes later he wrote “Ouch!” Ouch is right. Economists expected 180,000 new jobs in January but actually only 113,000 were reported. So far the rest of the posts seem to be looking for silver linings, something Zero Hedge isn’t doing.
So much for the hope of either a surge in January jobs, or a massive upward revision in the December print. Moments ago the January jobs number came out and at 113K, it was a huge miss to the expected 180K, but more importantly, the December number which was expected to be revised much higher was virtually unchanged at 75K, compared to 74K originally. The unemployment rate, which has become largely irrelevant, dipped to 6.6% from 6.7%, just so Obama can get the brownie points for fixing the economy. However, judging by the market reaction this is hardly what the traders think. (Read More)
Get used to the new normal.