020 Jobs Report 07 07 23

Episode 020: Welcome to "Markets with Megan," where Megan Horneman, the Chief Investment Officer of Verdence Capital Advisors, provides insightful economic analysis. In this episode, Megan follows up on yesterday's podcast, which served as a prelude to the jobs report. Today, the official jobs report was released, reflecting some weaknesses seen in other labor market indicators. The report reveals the addition of 209,000 jobs, slightly below expectations and significantly lower than the previous ADP report. Join us as Megan breaks down the details and analyzes the implications. Despite the overall weaker job report, the Federal Reserve will focus on the declining unemployment rate and the rise in average hourly earnings, an indicator of inflation. With average hourly earnings increasing over 4 percent year-over-year, it is likely that the Federal Reserve will raise rates in July. However, there are underlying weaknesses, such as a decline in temporary workers and downward revisions to prior months. The Fed's approach may remain data-dependent. Stay tuned for further insights on inflation indicators to gain a better understanding of their September actions. The equity markets are responding with mixed sentiments, as this report offers both bearish and bullish elements. Megan anticipates continued labor market weakness throughout the year, making a recession in the next 12 months increasingly probable. For questions or comments, please reach out to us at podcast@verdence.com. Thank you for joining us on this episode of "Markets with Megan"!