According to ADP, 298K jobs were added in February, crushing the expected 189K. February’s report comes on the heels of very strong revised numbers for January, further solidifying the notion that the Trump Administration inherited a stout labor market.
The Department of Labor’s Projection for Friday’s non-farm payroll report call for 190K new jobs.
After Yellen and the Feds gave promising clues that a March rate hike is all but inked in, a strong February jobs report further strengthens their case. According to the CME FedWatch Tool the probability of a quarter-point rate hike is 90.8%. The Federal Open Market Committee will announce its near-term plans on monetary tightening on March 15th.
With the continued dwindling of qualified job candidates in the labor pool, economists predict the unemployment rate to dip one tenth to 4.7%, and average hourly earnings to rise .3%. This dramatic jump in average hourly earnings will surely renew talks of wage inflation.
Traders planning to trade news events, such as Employment Reports, should be prepared for possible increased volatility and have a plan in place to minimize risk.
For up-to-date market commentary, news announcements & more, bookmark the NinjaTrader Blog!