{"id":6200,"date":"2023-09-03T10:48:42","date_gmt":"2023-09-03T10:48:42","guid":{"rendered":"https:\/\/prosfunds.com\/markets\/there-are-2-worries-for-the-stock-market-in-fridays-jobs-report-former-sac-capital-macro-trader-says\/"},"modified":"2023-09-03T10:48:44","modified_gmt":"2023-09-03T10:48:44","slug":"there-are-2-worries-for-the-stock-market-in-fridays-jobs-report-former-sac-capital-macro-trader-says","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=6200","title":{"rendered":"There are 2 worries for the stock market in Friday\u2019s jobs report, former SAC Capital macro trader says"},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0002466794\" role=\"document\">\n<p>Friday\u2019s monthly jobs report for August points to a further cooling in the labor market, a welcome sign for markets and the Federal Reserve\u2019s inflation fight.<\/p>\n<p>But Peter Corey, co-founder and chief market strategist at Pave Finance, still sees two worrying signs in the report, and he isn\u2019t totally convinced the Fed is done yet with its historic stretch of rate hikes. <\/p>\n<div class=\"paywall\">\n<p>\u201cI try to look at the data, to know what will move the market,\u201d Corey, a former macro trader at Steve Cohen\u2019s SAC Capital, told MarketWatch on Friday. \u201cMy view is that this jobs number was much stronger than what people are looking at.\u201d<\/p>\n<p>While he\u2019s focused on 187,000 new jobs in August coming in higher than expected, a more crucial  factor for him might be the average workweek edging up to 34.4 hours, while employment for temporary workers fell. <\/p>\n<p>Corey said a continuation of the trend would be important because it could put upward pressure on wages, with full-time staff likely picking up the slack. \u201cIf average earnings rise, that could scare the Fed into tightening,\u201d Corey told MarketWatch on Friday.<\/p>\n<p>His second area of focus was the unemployment bumping up to a 3.8% rate in August, which according to the Fed\u2019s \u201cSahm Rule\u201d could signal a looming an economic recession. The rule broadly says that if the 3-month rolling average for the unemployment rate increases by a half percentage point from the low of the year before, that the U.S. has entered a recession, or is on the cusp of a contraction.<\/p>\n<p>As of August, the 3-month rolling average was 3.6%. The rule would be triggered if the current unemployment rate holds for two more months, Corey said.<\/p>\n<p>Claudia Sahm, the former Fed economist\u00a0who gave her name to the Sahm Rule recession indicator told MarketWatch in December that her base case was for the U.S. would avoid a recession. Importantly, she also was thinking the Fed should stop short of raising its benchmark rate above 5%, which it didn\u2019t. <\/p>\n<p>The Federal Reserve raised rates in July to a 22-year high in a range of 5.25%-5.5%, and has left the door open to potentially other rate hikes this year to keep inflation in check.<\/p>\n<p><strong>See<\/strong>: Unemployment surge to 3.8% may be a summer-jobs mirage<\/p>\n<p>Corey also thinks too little attention was on the part of Chairman Jerome Powell\u2019s late August Jackson Hole speech where he said, \u201cinflation has become more responsive to labor market tightness\u201d than in recent decades. \u201cThey are hyper focused on the labor market,\u201d he said. <\/p>\n<p>Pave Financial offers a consumer and professional product that lets individuals \u201cinvest in stocks like the 0.1%\u201d through an app. It\u2019s powered by algorithm hat optimizes investor portfolios based on their current holdings and preferences.<\/p>\n<p>U.S. stocks ended Friday mostly higher, while booking strong weekly gains. The S&amp;P 500<br \/>\n        SPX<br \/>\n       was up 17.6% on the year, while the Dow Jones Industrial<br \/>\n        DJIA<br \/>\n       was 5.1% higher and the Nasdaq Composite Index<br \/>\n        COMP<br \/>\n       advanced 34.1% so far in 2023, after booking its best eight months before Labor Day since 2003.<\/p>\n<p><strong>Read:<\/strong> This hadn\u2019t happened on the U.S. Treasury market in 250 years. Now it has<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/story\/former-sac-capital-macro-trader-sees-2-worries-for-the-stock-market-in-fridays-jobs-report-8207ec47?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Friday\u2019s monthly jobs report for August points to a further cooling in the labor market, a welcome sign for markets and the Federal Reserve\u2019s inflation fight. But Peter Corey, co-founder and chief market strategist at Pave Finance, still sees two worrying signs in the report, and he isn\u2019t totally convinced the Fed is done yet [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6201,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[33],"tags":[],"class_list":{"0":"post-6200","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>There are 2 worries for the stock market in Friday\u2019s jobs report, former SAC Capital macro trader says | Prosfunds<\/title>\n<meta name=\"description\" content=\"Friday\u2019s monthly jobs report for August points to a further cooling in the labor market, a welcome sign for markets and the Federal 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