February Employment Report – The Perfect Storm

The Dow Joes Industrial Average surged triple digits on Friday’s open on news from the Labor Department that February produced 313K new jobs.

February’s strong employment report marks the economies best month since July 2016. While the numbers outperformed economists’ predictions, wage growth was rather lackluster. On the surface February’s tepid wage performance could be viewed negatively among investors. However, the lack of wage growth combined with a robust jobs report is the perfect storm for Wall Street.

A spike in wage growth combined with a strong employment report could rejuvenate fears of inflation triggering a mass exodus similar to the sharp selloff in early February. With little movement in wage growth, it shows there is still room for expansion in an economy that is already bursting at the seams.

The better-than-expected jobs report was also reinforced by the news that President Trump will tentatively meet face to face with North Korean Kim Jong Un and optimism on newly placed tariffs imposed on aluminum and steel.

E-Mini Dow Futures Chart

The above chart, created with the award winning NinjaTrader platform, shows a 2-day view of the June E-Mini DOW futures contract including the Volume Zones and MACD indicators. NinjaTrader is preloaded with nearly 100 free indicators to aid in your technical analysis of the markets. Get started for FREE today!