BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager
(615) 591-0611 mbartlett@argenttrust.com
The economy added 213,000 jobs in June, slightly above forecasts and the unemployment rate moved up two tenths to 4.0%. Average hourly earnings increased just 0.2% in June and has increased 2.7% on an annual basis. A decent headline jobs number with people entering the labor force, which pushed the unemployment rate higher. Wage growth remains elusive and below the historical average. The Federal Reserve will need to consider a firm, but not exceptionally tight, labor market as it moves ahead with planned interest rate increases.
Separately, $34 billion of tariffs went into place on Chinese goods last night, to which China immediately responded with tariffs of an equal amount on U.S. goods. Should trade tensions continue to escalate, it could impact economic growth and policy going forward. In all, equity futures are mixed and yields are lower heading into the market open.
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