Stocks Closed Lower Yesterday Ahead Of This Morning's Employment Report

Market Moves You Need to See Stocks Closed Lower Yesterday Ahead Of This Morning's Employment Report [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Lower Yesterday Ahead Of This Morning's Employment Report Stocks closed sharply lower yesterday, reversing intraday gains. Wednesday morning's better than expected ADP Employment Report (184,000 private payroll jobs vs. the consensus for 150,000) appeared to have energized stocks after the report came out. But nervousness ahead of this morning's Employment Situation report by the Bureau of Labor Statistics (BLS), appears to have done the opposite yesterday. The consensus for this morning's BLS report is calling for 200,000 new jobs to have been created (170,000 from the private sector and 30,000 for the public), with the unemployment rate staying the same at 3.9%, while average hourly earnings ease to a 4.1% y/y increase vs. last month's 4.3%. Some have worried that a strong labor market (which is a proxy for the economy), will prevent the Fed from lowering interest rates. But Fed Chair, Jerome Powell, has acknowledged that a strong jobs market will not preclude the Fed from lowering rates -- recognizing that inflation can keep falling even if the labor market stays strong. Because so far, that’s exactly been the case. But a strong labor market does complicate the task for the Fed as it could indicate that the higher interest rates have not slowed the economy down enough in order to see the Fed's targeted 2% inflation rate. Yesterday's rise in crude oil prices (up $1.67 at $86.86), didn't calm anybody's worries over inflation. Crude oil has risen to a 5-month high. And gas prices have topped the average for this time last year. True, the core inflation rate strips out energy and food prices. But that doesn’t change the practical impact those higher costs have on consumers and businesses. In other news, yesterday's Weekly Jobless Claims rose by 9,000 to 221,000 vs. estimates for 213,000. The Challenger-Job Cut Report came in at 90,309 announced layoffs vs. last month's 84,638. And the International Trade in Goods and Services report showed the trade gap widening to -$68.9 billion vs. last month's -$67.6B, and views for -$66.5B. In addition to the jobs report, we'll also hear from Fed policymakers Susan Collins, Thomas Barkin, Lorie Logan, and Michelle Bowman at various speaking engagements throughout the day. But the main event today will indeed be this morning's Employment report. That comes out at 8:30 AM ET. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Alert: Buy These Ultimate Four Stocks Now]( There's still time to get in early. These aren't just 4 promising stocks. 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