Post #15929

Dow Down -1.33% as Economy Loses 94,000 Jobs The Dow is under pressure as risk sentiment turns lower on weak U.S. data. Price action is bleeding, and unless buyers reclaim key intraday levels quickly, the path of least resistance stays to the downside into the close. Friday’s selloff is being driven by a weaker labor print and what it means for the macro backdrop. The U.S. economy lost 92,000 jobs versus expectations for a +59,000 gain, and the unemployment rate rose to 4.4% (vs 4.3% expected). That combination raises recession/slowdown fears and adds stress to markets that were already wrestling with the “higher-for-longer” rate regime. A weakening job market in a still-tight policy environment is a bad mix: slower demand, tighter credit, and less room for earnings multiple expansion. Retail sales came in slightly better than expected (-0.2% vs -0.3% expected), but it wasn’t enough to offset the labor shock. - Alan