It was another good week for the stock market, but it came-partly to bad news for the economy, which means emergency funding will remain in place. Nevertheless, for all the hand wringing about debt and deficits, the stock market is reacting to the notion of more cash flowing into corporate coffers and bottom lines. There is a point when this tilts the other way, and there will be no easy answers, but that’s not the case now, and I have no idea when that turning point occurs.

Meanwhile, two compelling data points from Friday will continue to reverberate on Wall Street but more so on Main Street and Washington, D.C. 

Employment Report

The August jobs report was an unmitigated disaster at 235,000 against the consensus of 720,000. Even the highlights in the report came with asterisks. There was an immediate effort to blame the Delta variant as a temporary factor. And at the same time, augur for even more fiscal stimulus. We already know this buys the Federal Reserve time; as it stated, its focus is on full employment.

To read the full report, click here.