The employment report was a huge surprise and calmed fears of a recession.
The risks being priced into both stock and bond markets include a slowing of economic growth in 2019 and no increase in inflation . Those risks were reduced with the release of the December labor report last Friday. Nonfarm payrolls increased by 312,000 for the month, double the consensus forecast. Both the October and November growth were revised upward with October increasing to 274,000 from 237,000 and November rising from 155,000 to 176,000. This completes the yearly data for 2018. It was a year when the monthly average of job growth was 220,000 for the strongest year since 2015. The employment report was a huge surprise and calmed fears of a recession.
PROBANK AUSTIN ADVISOR - JANUARY 7, 2019