Tom Essaye Argues The Risks Will Be Worse In The Case Of A Too Hot Report
Dow and Nasdaq Head in Different Directions
Wall Street is holding its collective breath ahead of tomorrow’s July nonfarm payrolls report. The threat of higher interest rates have traders holding out hope for a report that’s not too hot, but not too cold, either. Sevens Report Research’s Tom Essaye argues the risks will be worse in the case of a “too hot report.”
“A very strong jobs report could boost wage-driven inflation fears, which could cause the 10-year yield to rise (that would clearly be a headwind on stocks),” Essaye writes. “Conversely, even if the jobs report is soft (and the August release can sometimes be), it’s just one bad labor market indicator (while all the rest are showing stability).”
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