After Friday’s stellar jobs report—254,000 jobs added in September vs. the Dow Jones forecast of 15,000—stocks and Treasury yields initially reacted with a big jump. The data confirms the strength of the labor market and the US economy. Let’s not forget, though, that a devastating hurricane ripped through six states, leaving people homeless, isolated, and without power. The hurricane would have caused job losses, especially in the services sector. We’ll know more in the next jobs report. Fortunately, the US dockworkers’ strike was short-lived, so its impact may have been very light. The Macro Picture The stronger-than-expected September jobs report resulted in increased investor optimism. In addition to a large increase in new jobs, unemployment fell to 4.1%, and average hourly earnings are up by 0.4%. The broader stock market indexes closed higher into the close, which is unusual price action for a Friday when too many uncertainties are lingering.…
