Job growth remained solid in October, as employers added 261,000 payroll positions while the unemployment rate ticked up to 3.7%. The data probably won't alter the Federal Reserve's push to hike its key interest rate close to 5%. After the jobs report, the Dow Jones industrial average rallied at the open, as the blue chip index tries to snap a four-session losing streak.
Jobs Report Hits And Misses
Net hiring exceeded the 210,000 forecast.
The private-sector added 233,000 jobs vs. the 200,000 expected, while government jobs rose by 28,000.
The average hourly wage rose 0.4% on the month, topping expectations. Annual wage growth eased to 4.7%, as expected.
Job gains for August and September were revised up by a combined 29,000. The average job gain over the past three months is a strong 289,000.
The unemployment rate was expected to edge up to 3.6%. This month's 306,000 rise in unemployment came as 22,000 people left the labor force, meaning they're no longer looking for work, while the ranks of the employed fell by 328,000.
The share of the working age population (age 16 and up) participating in the labor force unexpectedly dipped to 62.2%.
The headline job and wage figures come from the Labor Department's monthly survey of employers. The separate household survey details labor force participation, work status and the unemployment rate.
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Dow Jones, Treasury Yields React To Jobs Report
The Dow Jones rose 1.1% in early Friday's stock market action. The S&P 500 added 1.3% and the Nasdaq composite 1.3%.
A surprisingly hawkish news conference by Fed chief Jerome Powell has left the latest Dow Jones and broader market rally attempt on life support. Through Thursday's close, the Dow has lost 2.6% this week, the S&P 500 4.6% and the Nasdaq composite 6.8%.
The Dow remains 11.4% above its Sept. 30 closing low. The S&P 500 is 4% above its 52-week low on Oct. 12, while the Nasdaq is a slim 0.2% above its 52-week closing low on Oct. 14.
After Friday's jobs report, markets were pricing in 53% odds of a 75-basis-point rate hike on Dec. 14.
The 10-year Treasury yield rose 2 basis points to 4.14%, after initially jumping to 4.2%.
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Jobs Report Details
The leisure and hospitality sector added 35,000 jobs. Factory employment grew by ,32000.
Construction jobs rose by 1,000. Health care and social assistance payrolls rose 71,000. Retailers added a seasonally adjusted 7,000 jobs, while transportation and warehousing jobs rose 8,000.
Please follow Jed Graham on Twitter @IBD_JGraham for coverage of economic policy and financial markets.
