March US payrolls exceeded estimates; salaries rose gradually. (PART-2)

"The headline, revisions, unemployment rate, and average hourly wages all beat forecasts, so markets will likely be unable to ignore this report. The market is shifting Fed rate cut expectations further out, and Treasuries bear flatten on this announcement, which is expected."

Geopolitics and the CPI print next week will cause anxiety heading into the weekend. I wonder how eager investors will be to stay short the rates market heading into a weekend of geopolitical concern and CPI next week, especially because certain FOMC speakers have told us to focus on CPI rather than economic data. The market may be bumpy from here."

"How that ISM services set it up on Wednesday made good awful, and that seems to be the initial reaction. With inflation, average hourly earnings fell from previous years, as expected. Month over month, it heated up, but it was expected."

"Hotter, especially since average hours rose again. Participation increased too. However, it's a large beat on the headline figure with the 303 (thousand), so it's just a good piece of data, but the market is eager for rate reduction early in the summer, and this pushes back on that. I think it'll be a tumultuous day following yesterday."

Our fifth month with over 200,000 new jobs. We expected a cooling labor market to lead to early rate reduction, but the opposite may be true. For the June meeting, this report may have closed that door."

"The heated report markets expected was more than delivered. This should prompt a short-term stock pullback. Think the dollar will strengthen and bond yields, which have remained stable, will rise."

This report has increased pressure on next week's two big statistics, including the U.S. inflation report on Tuesday, which I expect to be poor. That could help write to the rescue."

The number is within the range that people expect the Fed to decrease interest rates this spring. As strange as it sounds, March unemployment may save the market."

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