It’s the end of summer and the major indices are doing ok after the release of this morning’s jobs report, which saw a jump in the unemployment rate, partially driven by an increase in labor force participation. On the other hand, total jobs increased 2%y/y, being the lowest YoY increase since March 2021.

Key areas:

• Health care +71,000
• Leisure and hospitality +40,000
• Social assistance +26,000
• Construction +22,000
• Transportation and warehousing -34,000 jobs (due in large part to the bankruptcy of Yellow (YRCW), a major trucking company, which caused about 30,000 workers without jobs)
• Information employment -15,000 

ISM Manufacturing for August rose to 47.6 from 46.4, surpassing the consensus of 47; however, new orders fell, and prices paid are back at the highest since April. Despite beating consensus, these results are very weak.

The energy sector is leading after WTI crude hit $85 a barrel for the first time this year. Traditional defense sectors continue to get hammered.

Market breadth is bullish with more highs than lows.

The markets are closed on Monday for the Labor Day holiday.  Enjoy the long weekend.