August had extremely slow job growth from the previous expectations coming in at 142,000 new jobs rather than the expected 215,000 new jobs. At the lowest level of new jobs created in the United States this year. There was some brighter spots in the report, the unemployment rate went down and wages rose faster than inflation. All good things for people with jobs. The unemployment rate though went down because less people are participating in the labor force not because of new jobs.
The effects of this report on the market will probably be negative at first. Although I could see the market rise later because the Fed might be unwilling to raise rates or slow bond-buying after such a weak report.
We will just have to see but I would be cautious trading today and the next week until more information comes out. Trade Wisely.
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