Tom Essaye has proposed two unlikely scenarios for Friday’s jobs report
Two unlikely scenarios for Friday’s jobs report: Tom Essaye Quoted in MarketWatch
Two ‘wildcard’ scenarios for Friday’s jobs report
Tom Essaye, founder of Sevens Report Research, has proposed two unlikely scenarios for Friday’s jobs report that are nevertheless worth considering.
In a report shared with MarketWatch early Friday, Essaye outlined his two “wildcard” scenarios — one where jobs growth surprises to the upside, but wage growth slows, and another that is essentially the inverse.
- “The first potential wildcard to watch today is a jobs report that supports the case for a “no landing” or already-achieved soft-landing, which would be characterized by an as-expected or better-than-anticipated job adds headline, steady or falling unemployment rate, and significant drop in wage growth to suggest suddenly easing inflation pressures.”
- “The second wildcard to watch is data that suggests the economy is falling into a rut of stagflation with a sharp slowdown in growth that is on the brink of contraction but with still sticky and elevated inflation pressures. A very underwhelming job adds headline, a spike in the unemployment rate, and an unforeseen jump in wage growth would fit the criteria of a stagflationary release.”
Also, click here to view the full MarketWatch article published on June 7th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.
If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.
To strengthen your market knowledge take a free trial of The Sevens Report.
Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.
