The market got what it wanted, or so it seemed, when the jobs report came in below consensus. Overall, it is not too bad.

Equity futures edged higher, and it seemed we could set a record high today.

Then at some point, the move stalled, and stocks started drifting lower. Key names like GE Vernova (GEV) saw recent weakness accelerate.

This is a bellwether name for the hottest story in the market: data center growth.

On July 24^th seven firms upgraded or reiterated their buy rating on the stock, and it took off like a rocket.

Today the shares are trading below the July 24^th level.

It’s not the only name that’s under pressure despite being considered a grand slam.

So, digging deeper into the report, maybe, it wasn’t a Goldilocks situation after all.

After revision, June is now a negative number.

The number of people not in the labor force, but want a job, has gone parabolic.

And speaking of data centers – where are the construction jobs?

So maybe Jay Powell & Co will have to take more drastic action – there is now a 14% chance for a 50-bps cut this month.

Furthermore, the probability of 3 rate cuts over the rest of the year has surged to 73.3%.

On that note, there was a scathing report from Scott Bessent about how the Fed, and its outsized role(s), has hurt its credibility to be an independent bank.

 

In addition, Economic Advisor Hasset has indicated that the number of jobs for August could be revised higher, by 70,000 jobs, as the Bureau of Labor Statistics tends to revise August numbers due to seasonal adjustments.

Have a great weekend!

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