1) The bad.
Today's non-form is not good. Only 114K new job were added in July, much lower than previous and concensus.
2). The worse
The last two months non-farm payrolls were both revised down. Including those rivision, July only added 30K news jobs!! It is those 30K that drove a lot of investors crazy, and stirred panic.
3) the worst.
This fed is not flexible at all. Today, some fed official said, they are not going to react to one month number; another said, 117K new addtion is a decent number!!! I would guess, those comments did not help to calm the market at all.
Yet, this is not really the worst!
The worst would be the following:
if next weeks number does not change the narrative, or if they give us a confirmation, the economy and the market would be in trouble. Why? because Fed's next meeting is a little over two months away. Two months may be too long. The two months waiting could be the worst for the economy and the market.
let's hope that next week's data is not too bad. if it is bad, the fed will not wait for two month. They could do interim, they could do something during Jackson hole.
Let's cross fingers.
