After Disappointing Jobs Data, Now What?
By Russ Koesterich: Stocks tumbled Friday after disappointing May jobs data provided stark evidence that three years into the recovery, we’re still seeing few signs of a return to a more normal economy. Now, many investors are wondering what the report means for the U.S. economy and stocks going forward. First, the implications for the economy: As jobs numbers tend to lag broader economic activity, the report doesn’t in itself suggest that the United States is slipping back into recession. It does, however, provide additional evidence, if any were needed, that the recovery is stuck in first gear thanks to the debt overhang of last decade. In addition, it’s worth calling out that according to the new data, the United States created only 69,000 net new jobs in May, less than half of what economists were expecting and the slowest rate of net new job creation in a year. Meanwhile, wages for hourlyComplete Story »