It just reinforces the point that the data isn’t as bad as the market’s reaction

The apparent impetus for the selloff, a weak jobs report, was by no means the end of the world. The U.S. economy still added 114,000 jobs in July. And on Monday, the Institute for Supply Management’s services PMI came in stronger than expected. Sevens Report Research’s Tom Essaye argues that itself pushes back against the recession narrative that’s starting to trickle through social media and Wall Street commentary.

“It was generally ignored by the market yesterday because they didn’t want to hear it, but that was an important number,” Essaye says. “I think it just reinforces the point that the data isn’t as bad as the market’s reaction over the past two trading days implies. And I think that should give investors some some comfort.”

“The soft landing was always going to be bumpy,” Essaye says. “The market kept saying, ‘we’re achieving a soft landing,’ but it was priced like there was no landing. Now we’re having that disconnect corrected. It’s a long-term positive because it gets us to a sustainable level.