Job openings unexpectedly rose in May, interrupting a months-long downtrend that underscored a gradual slowdown in labor demand. Available positions increased to 8.14 million form a downwardly revise 7.92 million reading in the prior month that was the lowest in three years.
Both hiring and layoffs picked up in a sign of churn in the job market. The quits rate was unchanged.
The number of vacancies per unemployed worker, a ratio the Federal Reserve watches closely, held at 1.2 and matched the lowest since June 2021. At its peak in 2022, the ratio was 2 to 1.
Will Friday’s BLS Employment survey suggest the same as the JOLTS Labor Survey…a healthy and vibrant labor market?
Treasury yields pared declines after the data was released, tempering optimism from FRB Chair Powell’s remarks that the latest data is suggesting the disinflation trend has resumed.
Powell stated, “there has been a substantial move toward better balance in the labor market between the supply of and demand for workers.”
Equites led by the mega cap gained. The Dow was up about 0.2% while the NASDAQ rose 0.7%, the result of Powell’s comments stating the US is back on a “disinflationary path.”
The markets will close today at 1:00 PM for the Fourth of July holiday.
Last night the foreign markets were up. London was up 0.56%, Paris up 1.55% and Frankfurt up 0.92%. China was down 0.49%, Japan up 1.26% and Hang Seng up 1.18%.
Futures are flat heading into a shortened trading session and a data dump that includes the ISM Services Index, durable goods and factory orders and FOMC Minutes. The 10-year is off 1/32 to yield 4.43%.
Kent Engelke
Chief Economic Strategist Managing Director
The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. Any opinions expressed are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results. This material is being provided for informational purposes only. Any information should not be deemed a recommendation to buy, hold or sell any security. Certain information has been obtained from third-party sources we consider reliable, but we do not guarantee that such information is accurate or complete. This report is not a complete description of the securities, markets, or developments referred to in this material and does not include all available data necessary for making an investment decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. If you would like to unsubscribe from this e-mail distribution, please reply to this e-mail and indicate that you wish to unsubscribe in your response.
